Nov 10, 2011. /Lesprom Network/. Smurfit Kappa Group plc (‘SKG’) announced results for the 3 months and 9 months ending 30 September 2011. At Euro 1,868 million for the 3Q 2011, revenue was 10% higher than in the 3Q 2010. However, allowing for the impact of currency and hyperinflation accounting, as well as acquisitions, disposals and closures, the underlying increase in revenue was Euro 154 million, the equivalent of approximately 9%, as the company said in a press release received by Lesprom Network. At Euro 264 million, EBITDA in the 3Q 2011 was Euro 21 million higher than the 3Q 2010. Allowing for currency and hyperinflation accounting, and for a modest impact from acquisitions, disposals and closures, underlying EBITDA increased year-on-year by Euro 13 million, the equivalent of 5%. Revenue and EBITDA in the 3Q were stable compared to the 2Q 2011. However, allowing for the impact of currency and hyperinflation accounting, underlying revenue and EBITDA in the 3Q were Euro 27 million and Euro 7 million lower respectively. Earnings per share was 22.2 cent for the quarter to September 2011. Revenue of Euro 5,538 million in the first nine months of 2011 represented a 12% increase on the first nine months of 2010. Allowing for the impact of currency and hyperinflation accounting, as well as acquisitions, disposals and closures, revenue shows an underlying year-on-year increase of Euro 619 million (13%). At Euro 771 million, EBITDA in the first nine months of 2011 was Euro 124 million, or 19% higher than in the comparable period in 2010. Allowing for the impact of currency and hyperinflation accounting, as well as acquisitions, disposals and closures, underlying EBITDA increased by Euro 112 million (17%). Exceptional items in the first nine months of 2011 amounted to Euro 36 million and almost entirely related to the permanent closure of SKG’s Nanterre mill in France in the 2Q. In the first nine months of 2010, exceptional charges amounted to Euro 56 million, approximately Euro 40 million of which related to the asset swap with Mondi in the second quarter, while the balance related to the currency devaluation and associated hyperinflationary adjustments in Venezuela, which were booked primarily in quarter one. Gary McGann, Smurfit Kappa Group CEO, commented: “We are pleased to report a strong EBITDA of Euro 264 million for the 3Q. As expected, our free cash flow generation accelerated in the quarter, delivering further net debt reduction of Euro 82 million in the period, or Euro 189 million in the year-to-date. Lower net debt, combined with continued earnings progress, reduced our net debt to EBITDA ratio to 2.8x at the end of September 2011. In the 3Q, box demand continued to grow, albeit at a slower pace than in the first half, and higher inventory levels generated some downward pressure on paper prices in Europe. Against that backdrop, our EBITDA margin of 14.1% primarily highlights the increasing efficiency of our integrated model, continued box price recovery, and a sustained strong performance in our Latin American business. Return on capital employed was 12.5% for the 3Q, compared to 8.5% in the prior year. Over the past four years, we have strengthened our business platform through significant debt paydown and unrelenting cost reduction actions, which will sustain the delivery of strong cash flows and improving returns through the cycle. We are committed to continue building our strong market credentials in the areas of packaging innovation, customer service and sustainability. In that context, despite softening demand, we expect to deliver a full-year 2011 EBITDA performance in line with current market expectations, and re-affirm our target to reduce net debt to Euro 2.85 billion by the year end.” Smurfit Kappa Group is a world player in paper based packaging with leading market positions in Europe and in Latin America.