Mondi Group Released Trading Statement
OREANDA-NEWS. February 21, 2012. As part of the dual listed company structure, Mondi Limited and Mondi plc (together 'Mondi Group') notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the Listings Requirements of the JSE and/or the Disclosure and Transparency and Listing Rules of the United Kingdom Listing Authority.
In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding period.
Mondi is currently finalising its results for the year ended 31 December 2011, which will be released on 23 February 2012. As announced in Mondi’s Interim Management Statement released on 31 October 2011, the Group’s underlying operating profit in the third quarter 2011 of €136 million (year to date €490 million) was well above that of the comparable prior year period but below that achieved in the previous quarter (€175 million). It can now be confirmed that the underlying operating profit for the fourth quarter of 2011 is expected to be similar to that of the comparable prior year period. Underlying operating profit for the year ended 31 December 2011 is expected to be considerably higher than that of the comparable prior year period.
Furthermore, in the prior year, the Group recognised a net special item charge after tax of €15 million. The equivalent special item charge for the year ended 31 December 2011 is around €53 million. A €4 million net special item gain was recognised in the first half, with a net charge of circa €57 million taken in the second half, mainly related to asset impairment costs in Aylesford Newsprint (€33 million) and restructuring and asset impairment costs in the Bags & Coatings business.
As reported in the interim management statement of 31 October 2011, the recapitalisation and demerger of Mpact (formerly Mondi Packaging South Africa) and the related Mondi Limited share consolidation have been completed. The results of Mpact will be presented as a discontinued operation in the financial results of the Group at 31 December 2011 with comparative information restated accordingly.
Accordingly, Mondi advises that it expects earnings per share (‘EPS’) for the year ended 31 December 2011 to be within the ranges shown below:
basic earnings per share – alternative measure (euro cents) 69 to 74 (2010 45.6)
basic earnings per share (combined operations) (euro cents) 64 to 69 (2010 44.1)
basic headline earnings per share (euro cents) 67 to 72 (2010 47.0)
Consistent with the half-yearly financial statements, the directors have again elected to present an alternative, non-IFRS, measure of underlying earnings per share from continuing operations (“Basic earnings per share – alternative measure”). In terms of this measure the recapitalisation and demerger of Mpact and the Mondi Limited share consolidation have been adjusted to reflect the position as if the transaction had been completed at the beginning of each period presented. This will enable a useful comparison of underlying earnings per share from continuing operations, based on the consolidated number of shares, which will be the basis of the future performance of the Group.
Mondi has disclosed basic EPS which comprises the total operations of the Group including the discontinued operation and the effect of special items.
The disclosure of basic headline EPS is required under the Listings Requirements of the JSE Limited and has been calculated in accordance with Circular 3/2009 as issued by the South African Institute of Chartered Accountants.
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