Feb 16, 2010. /Lesprom Network/. Packaging group Smurfit Kappa has reported a 5% drop in core profit for its 4Q and said it expected to deliver profit growth in 2010. The company saw earnings before interest, tax, depreciation and amortisation (EBITDA) decline Euro186 million in the three months ended December 31, 2009 as against Euro 195 million for the same quarter a year earlier, as Irish Times reported. 4Q revenues were down 6% to Euro 1,631 million. "In the 4Q 2009, as anticipated, higher raw material costs compressed margins and affected the Group’s profitability.However, this was largely offset by further cost reduction actions and the commencement of the increase in SKG’s European corrugated and kraftliner pricing," said Smurfit Kappa chief executive Gary McCann. For fiscal 2009 the company recorded a Euro 52 million pre-tax loss, as against an Euro 11 million loss in 2008. Full-year EBITDA was down 21% at Euro 741 million while revenue was down 14% to Euro 6,057 million. "On the demand side, the group has experienced a return to positive volume growth in the last two months of 2009, and continues to see improving order books into 2010," added Mr McCann. The company said that a further increase in recovered fibre prices in early 2010 "is generating some near-term margin compression within the group’s system." Smurfit Kappa Group operates in 21 countries in Europe and is the European leader in containerboard, solidboard, corrugated and solidboard packaging and has a key position in several other packaging and paper market segments, including graphicboard, sack paper and paper sacks.