May 19, 2011. /Lesprom Network/. As expected, the Mayr-Melnhof Group succeeded in concluding the first quarter of 2011 with a significant improvement in results. Following the extraordinary upturn of last year, the market environment has now returned to normal. Both divisions, MM Karton and MM Packaging, have continued to sustain their strong position and recorded nearly full capacity in the first three months of this year, as the company said in a press release received by Lesprom Network. MM Karton succeeded in largely compensating the continued steep increase in input costs, while MM Packaging managed this only gradually in the course of the first quarter. The operating margin of the Group increased to 10.1 %. The consolidated sales of Mayr-Melnhof Group increased by 12.6 %, mainly due to higher average prices, and reached Euro 494.7 million, compared to Euro 439.2 million in1Q 2010. The operating profit increased by 24.4 % or Euro 9.8 million to Euro 50 million, primarily as a consequence of the improved result of cartonboard production. Accordingly the operating margin rose from 9.2 % to 10.1%. At Euro 48.5 million, profit before tax was 24.4 % higher than the previous year. Income tax expense amounted to Euro 13.1 million. Thus, the effective Group tax rate was 27%. Profit for the period therefore rose from Euro 27.8 million to Euro 35.4 million, representing an increase of 27.3 % compared to last year’s result. The Mayr-Melnhof Group is the world-leader in coated recycled cartonboard and Europe’s leading manufacturer of folding cartons. Mayr-Melnhof’s operations are entirely concentrated on the core business areas which are managed in two operative segments MM-Karton and MM-Packaging.