Mondi Packaging Paper receives positive recommendations despite poor results
Nov 02, 2005. The net profits of Mondi Packaging Paper (MPP) in the third quarter of 2005 fell by 81% in comparison to the same period of last year. Revenue slumped by 3%. Low paper prices and a strong zloty hit MPP's financial results. Sales of paper represent 95% of MPP's income, while over 75% of MPP's produce is exported.
Nov 02, 2005. /Lesprom Network/. The net profits of Mondi Packaging Paper (MPP) in the third quarter of 2005 fell by 81% in comparison to the same period of last year. Revenue slumped by 3%. Low paper prices and a strong zloty hit MPP's financial results. Sales of paper represent 95% of MPP's income, while over 75% of MPP's produce is exported.
Despite these facts, MPP's share price surged recently; in the last nine days, it grew by 11.4%. The increase could result from the positive recommendation given by CDM Pekao brokerage house. Its analysts claim that despite the discouraging results in the third quarter, attitudes towards the company will improve due to rising paper prices. Furthermore, the zloty's exchange rate has also reversed its trend lately. Nevertheless, the chances of a radical improvement at MPP remain low.