Smith (DS) PLC Had a Continued Resilient Performance

DS Smith said that trading has been resilient in a challenging market and that its performance for the rest of the year is in line with management expectations. The London-listed packaging company said Wednesday that like-for-like corrugated box volume performance for the period since Nov. 1 has continued to improve compared with the first half of the fiscal year, with flat like-for-like volumes. North America and Eastern Europe saw good growth in the quarter, offset by a weaker performance in Northern Europe, DS Smith said.

It added that focus remains on resilient pricing, operational efficiency and tight cost control with anticipated containerboard price increases expected to be reflected in ongoing packaging prices.

The company didn't provide any update on the Mondi takeover approach. On Feb. 8 DS Smith said that it had received a highly preliminary expression of interest from larger peer Mondi over a possible offer, but that no proposal had been received at that stage. Mondi subsequently confirmed that it was considering an all-share merger with DS Smith.

Any deal would create a company worth 10.525 billion pounds ($13.37 billion) based on each company's current market values.

Mondi has until March 7 to either make a formal offer or walk away under U.K. Takeover Panel rules.