October 11, 2017 / 7:41 AM / 3 years ago

South Africa's Mondi's Q3 profit rises, warns on full year

JOHANNESBURG, Oct 11 (Reuters) - South African packaging and paper company Mondi reported an 8 percent rise in quarterly underlying operating profit on Wednesday helped up higher prices but said its full-year would miss expectations.

Underlying operating profit rose to 245 million euros ($289.79 million) in the three months to September 30, the company said in a statement.

Higher average selling prices were partly offset by negative currency effects and higher costs, particularly from wood, energy and chemicals.

“Costs were generally higher than the comparable prior year period and the previous quarter,” Mondi said.

Mondi said it expected a strong final quarter but performance for the year was likely to be below market expectations because of cost pressures and unfavourable currency swings.

“Continuing cost pressures and negative currency impacts are expected to result in an underlying performance for the year modestly below market expectations,” the company said.

$1 = 0.8455 euros Reporting by Tanisha Heiberg; editing by Jason Neely

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