PackSourcing- Global packaging & food industry trade B2B marketplace, provide suppliers, products and related news information.

DS Smith reports strong Q1

DS Smith reports strong Q1
2010-09-08

packagingnews.co.uk

DS Smith reports strong Q1 as it plans end for final-salary pensions

DS Smith has reported a positive start to its financial year as it revealed plans to close its final-salary pension scheme.

In an interim management statement this morning before its AGM today, the group said volumes had grown in the first quarter that and that it was pushing prices up to recover high paper costs.

It also reported progress in the integration of French packaging group Otor, whose EUR247m acquisition completed last week, and in chief executive Miles Roberts’ strategic review of the business.

However, it also reported that it had begun consultations with UK employees in its defined benefit pension scheme with a view to closing the scheme to future accrual. "This will help the Group better manage this exposure in the future," the firm said.

'Positive demand'
In its packaging business, the corrugated group said it had seen a good first quarter thanks to "positive demand trends" in Europe and the UK.

"The anticipated phased recovery of paper price increases has led to profits in line with our expectations," the statement said.

Chief executive Miles Roberts’ business review, which aims to focus the business on high-margin work, is progressing, the statement said. More details will be announced when half-year results are revealed on 9 December.

The business completed its acquisition of French retail-ready specialist Otor last week (1 September) and, in today’s statement, reported that integration teams have been put in place to manage the merging of Otor and DS Smith’s existing French business.

It added that they were on track in plans to make EUR9.3m ((£7.7m) in annual cost savings by the second full financial year of ownership of Otor.

Claims
The copyrights of articles in the website belong to authors. Please inform us if there is any violation of intellectual property and we will delete the articles immediately.

Relevent Information More...

» Tzaw Bao proudly reports their original Taiwanese machines are still in use after 26 years.
» McDonald’s reaches certified fibre milestone for its Europe packaging
» Medical molder MedPlast to open fourth plant in China
» Smurfit Kappa Vitop tap production reaches three billion
» Enduring Brands: Avoiding the Brand Obsolescence Trap
» Brau Beviale, Emballage and Vinitech: Three Exhibitions For Makro Labelling
» Give your dog a home-cooked meal with Warm Ups
» Heidelberg UK adds Gallus folding carton equipment to its line
» Storopack UK acquires FP International’s loose fill division
» January Packaging Concepts