Johannesburg - Mondi Ltd, the largest producer of kraft paper and industrial bags in Europe, said first-half profit climbed as much as 28 percent.
Earnings excluding one-time items for the six months through June 30 probably increased 25 percent to 35 percent, to as much as 70 euro cents, the Johannesburg-based company said in a statement on Tuesday.
Mondi expects to record a net after-tax charge of about 36 million euros ($40 million) for the period, related mainly to the closure of plants in Finland and Spain.
The ranges provided by Mondi suggest better-than-expected earnings, probably driven by the company’s capital investment program, Justin Jordan, a London-based analyst at Jefferies Group LLC, said in a note on Tuesday.
Mondi, which said in May its projects were all on schedule and within budget, will report first-half results on August 6.
The shares have risen 56 percent this year in Johannesburg and reached a record high on July 24.
They increased 0.9 percent to R295.38 by 9.05am in Johannesburg.
Bloomberg