3Q17 trading update – guiding for improved EBITDA and cash flow qoq
MMK has reported its 3Q17 trading update this morning. Overall, the market should take the results positively, in our view, as group steel sales beat our estimate by 5% (+10% qoq and +11% yoy), and average prices remained flat qoq due to the higher output of value-added products, so revenue from Magnitogorsk was 4% above our forecast (+11% qoq, +29% yoy). Management is expecting a meaningful improvement in EBITDA qoq as a result, in contrast to Severstal, which should see a fall, in our view. In addition, it expects a release of working capital to boost cash flow further, which we did not factor in as we expected less destocking. Coal output was lower than we expected, but this should not offset the positives elsewhere.
Mayr-Melnhof Karton and its subsidiaries are primarily engaged in manufacturing and selling cartonboard and folding cartons with a focus on Europe. Co.'s business segments include: Mayr-Melnhof Karton, which is engaged in the manufactures and markets numerous grades of cartonboard, concentrating on coated cartonboard produced predominantly from recovered paper as well as virgin fiber-based cartonboard; and Mayr-Melnhof Packaging, which is engaged in converts cartonboard into industrial printed folding cartons mainly for the food industry, other consumer goods industries, and into cigarette packaging as well as confectionary packaging.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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