Mar 04, 2010. /Lesprom Network/. Mondi reports a 44% fall in its full year headline earnings per share to 11.4 Euro cents for 2009 compared to 20.3 Euro cents in 2008. Group revenue declined 17% to Euro 5.26 billion in the year to end December 2009, from Euro 6.3 billion in the 12 months to end December 2008, as Times Live reported. Earnings before interest, tax, depreciation and amortization decreased by 21% to Euro 645 million from Euro 814 million and underlying operating profit fell 33% to Euro 294 million from Euro 441 million the year before. The group's total dividend for 2009 dropped 25% to 9.5 Euro cents from 12.7 Euro cents the previous year. The group's cost reduction programme delivered savings of Euro 251 million, exceeding the Euro 180 million target announced at the beginning of the year. In just over two years, Mondi has exited either temporarily or permanently around 930,000 tons of high cost paper capacity and closed or sold 18 converting sites. Net debt for the year amounted to Euro 173 million despite funding around Euro 300 million of capital expenditure on the two major expansion projects in Poland and Russia. The group had nearly Euro 1 billion of undrawn committed debt facilities as at end December 2009. "Mondi has delivered a solid full year performance in very challenging market conditions," said Mondi Group chief executive David Hathorn. "The early part of the year was particularly difficult for our European operations, characterised by sharp volume declines and consequent pricing pressures," Hathorn said. But he said it has been pleasing to see the subsequent recovery in demand, which supported price increases during the fourth quarter in various of the group's packaging segments. Hathorn said the strong performance throughout the year of the European uncoated fine paper business was testament to the inherent strengths of this business and management's unwavering focus under very challenging circumstances. "The South African export focused businesses continue to struggle, in large part due to the strength of the rand, and while we continue to take steps to improve performance, it is clear that a return to satisfactory levels of profitability will not be possible without some increase in the rand selling prices," Hathorn said. Looking ahead, Hathorn said the group's performance would largely depend on the pace and extent of the global economic recovery. He said while there has been substantial industry capacity rationalisation over the past year, further supply side reductions might be required to ensure that supply and demand are balanced. "Encouragingly, however, we have seen a steady improvement in industry order volumes, with some recent price recovery in the European packaging grades. This improvement in our trading environment, together with the various restructuring actions taken over the course of 2009, positions Mondi well for the year ahead," Hathorn said.