Reno de Medici back in profit

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European demand for white lined chipboard has seen a weak 1.8% growth in the first half-year 2013; Production capacity fully utilised, reports RDM.

Italy's recycled cartonboard producer Reno de Medici is back in the black again. The company posted a net profit of €245,000 in the first half-year 2013 compared to a net loss of €3.9m in the same period previous year. Sales revenues increased 3% y-o-y to €245.8m on higher deliveries. Operating profit stood at €4.1m, clearly improving from the first half of 2012 at €888,000.

Reno de Medici sold 455,000 t of cartonboard in the first half of 2013, the company reported. With more tonnes sold in traditional European markets, the company reduced its exposure to overseas markets. 85% of RDM's net sales were made in the EU-countries. Italy accounted for almost 36% of the total sales in the first six months of this year.

According to Reno de Medici, the outlook for the remainder of the year remains uncertain due to the persistently weak macroeconomic data. Despite the continuing recession, the company expects a satisfactory order intake in the second half of the year. Revenues and margins are said to benefit from the announced increase in recycled cartonboard prices and the potential reduction in natural gas and electricity costs. Recovered paper prices were not expected to rise significantly and thus should not have a negative impact on margins in the second half-year 2013, the company explained.

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