Ad-hoc | 16 May 2000 08:48

Ad hoc-Service: Mayr-Melnhof Karton AG Qu 1,

Ad hoc-Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— – Continuous healthy development of demand – Full capacity utilisation – Sharp rise in raw materials costs offset by planned increase in productivity and higher prices – Significant improvement in sales and results – Good outlook for the 1st half -year 2000 Key indicators of the Mayr-Melnhof Group (consolidated figures in EUR millions) 1st Qu.2000 1st Qu.1999 +/- Net sales 259.8 215.2 +20.7% Operating profit (EBIT) 26.7 20.7 +29.0% Operating Margin 10.3% 9.6% Net income 17.2 14.8 +16.2% Investments in fixed tangible assets 17.0 20.5 As a result of the continuous high demand from Europe and our overseas markets, the Mayr-Melnhof Group has been able to report a full utilisation of capacities during the 1st quarter of 2000. In addition, the targeted investments over the past few years have led to the projected improvements in productivity. Following the rapid rise in raw materials prices, particularly fibres and natural gas, it was necessary to announce further price increases. Due to the timely implementation of all necessary measures, both internally and on the market, the Company was able to achieve a very good result during the 1st quarter of 2000. The rise in the Group’s operating profit of 29% to EUR 26.7 million, was generated by both the Cartonboard and the Packaging Divisions. The level during the same period in 1999 (EUR 20.7 million) was lower as a result of downtime due to rebuilding work. The operating margin totalled 10.3% (1st quarter of 1999: 9.6%). The consolidated net income increased by 16% to EUR 17.2 million (1st quarter of 1999: EUR 14.8 million). Consolidated sales rose by 21% to EUR 259.8 million (1st quarter of 1999: EUR 215.2 million) as a result of increased sales and improved prices. Capital investments in tangible fixed assets totalled EUR 17.0 million (1st quarter of 1999: EUR 20.5 million). Investments were primarily focused upon the rebuilding of board machine III at the Kolicevo Karton board mill in Slovenia. Positive development in Cartonboard and Packaging in EUR millions 1st Qu. 2000 1st Qu.1999 +/- Cartonboard Division: Sales 167.6 140.8 +19.0% Operating profit 19.1 14.9 +28.2% Packaging Division: Sales 109.9 90.8 +21.0% Operating profit 7.5 5.8 +29.3% Outlook Due to the continuing positive economic situation, both Divisions expect to experience good demand and high capacity utilisation throughout the year 2000. The order backlog of the Cartonboard Division was at 110,000 tonnes in mid May, still considered a very high level. The rapid rise in raw materials prices since mid 1999 also continued during April 2000. However, the momentum of this upward trend appears as if it will slow down in the coming months. A further rise in cartonboard prices of 15% for all deliveries from July 1, 2000 was necessary in order to offset cost increases to date. Customers were notified accordingly. Implementation of the necessary price increases for both the Cartonboard and the Packaging Divisions therefore remains the primary task over the coming months. However, the healthy demand situation makes this look feasible. In order to achieve a further improvement in results, the efficiency and productivity improvement programmes must be strictly pursued. For further information, please contact: Stephan Werba, Investor Relations, Mayr-Melnhof Karton AG, Brahmsplatz 6, A-1041 Vienna Tel.: (+43) 1/ 501 36-1180, Fax: (+43) 1/501 36-1195 e-mail: investor.relations@mm-karton.com New website: http://www.mayr-melnhof.com Ende der Mitteilung