DS Smith has reported a positive start to its financial year as it revealed plans to close its final-salary pension scheme.
In an interim management statement this morning before its AGM today, the group said volumes had grown in the first quarter that and that it was pushing prices up to recover high paper costs.
It also reported progress in the integration of French packaging group Otor, whose EUR247m acquisition completed last week, and in chief executive Miles Roberts’ strategic review of the business.
However, it also reported that it had begun consultations with UK employees in its defined benefit pension scheme with a view to closing the scheme to future accrual. "This will help the Group better manage this exposure in the future," the firm said.
'Positive demand'
In its packaging business, the corrugated group said it had seen a good first quarter thanks to "positive demand trends" in Europe and the UK.
"The anticipated phased recovery of paper price increases has led to profits in line with our expectations," the statement said.
Chief executive Miles Roberts’ business review, which
The business
It added that they were on track in plans to make EUR9.3m ((£7.7m) in annual cost savings by the second full financial year of ownership of Otor.
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