Dublin-listed Smurfit Kappa Group plc (SKG), one of the world’s largest integrated manufacturers of paper-based packaging products, has announced results for the first two quarters ending 30 June.

The results showed year-on-year EBITDA increase of 18% in second quarter to 260 million euro; a 28% increase in the first half to 514 million euro.

Gary McCann, Smurfit Kappa Group’s CEO, said: "SKG is pleased to report a strong performance growth for the second quarter and the first half of 2007.

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This performance reflects continued strong demand growth, balanced capacity across the Group’s markets and a generally positive pricing environment. Increased input costs and paper prices have not yet fully translated into higher corrugated prices, which are being progressively achieved. Increasing input costs, while causing margin pressure in the first half, underpin product price momentum and are expected to deliver continued corrugated price improvement and EBITDA growth in the second half and into 2008."

Smurfit Kappa Group operates in 22 countries in Europe and is a European leader in containerboard, solid board, corrugated and solid board packaging and has a key position in several other packaging and paper market segments, including graphic board, sack paper and paper sacks.

The group operates also has a growing presence in Eastern Europe and operates in nine countries in Latin America and is the only pan-regional operator.

(LC/SP)