Mondi Ltd., the largest producer of kraft paper and industrial bags in Europe, said first-half profit climbed as much as 28 percent.
Earnings excluding one-time items for the six months through June 30 probably increased 25 percent to 35 percent, to as much as 70 euro cents, the Johannesburg-based company said in a statement Tuesday. Mondi expects to record a net after-tax charge of about 36 million euros ($40 million) for the period, related mainly to the closure of plants in Finland and Spain.
The ranges provided by Mondi suggest better-than-expected earnings, probably driven by the company’s capital investment program, Justin Jordan, a London-based analyst at Jefferies Group LLC, said in a note on Tuesday. Mondi, which said in May its projects were all on schedule and within budget, will report first-half results on Aug. 6.
The shares have risen 56 percent this year in Johannesburg and reached a record high on July 24. They increased 0.9 percent to 295.38 rand by 9:05 a.m. in Johannesburg.