Ad Hoc News Details

Ad-Hoc Release: May 31, 2005 

Results for the first quarter of 2005

- Good period results
- Cartonboard sales below last year's period all time high due to ramp-up of
the modernized Eerbeek machine and investment at Nikopol
- Sluggish demand in Western Europe increases price competition
- Price discipline necessitates selective downtime at MM Karton in 2nd quarter

Group Key Indicators, IFRS, unaudited

The Mayr-Melnhof Group successfully held its ground in the first quarter of 2005, which, as previous quarters, was characterized by intensive price competition and customers' cautious planning in line with the sluggish economic development. Good period results were achieved as expected, with a profit for the period of EUR 25.3 million being slightly below last year's period (Q1 2004: EUR 26.6 million). Business volume at MM Packaging rose due to last year's acquisitions as well as new business. Cartonboard sales, however, did not reach the previous year's all time high due to the ramp-up of the modernized cartonboard machine at the Dutch Eerbeek mill and investment related downtime at the Bulgarian Nikopol mill.

OUTLOOK: Due to the uncertain economic development we still do not expect a pick up in private consumption in the main Western European market and accordingly in the demand for cartonboard and folding cartons. Eastern European markets, however, remain dynamic but hardfought. Under these circumstances stabilization of prices has become more difficult. At MM Karton price discipline is a clear priority, leading to selective downtime measures already in the second quarter. The folding carton business of MM Packaging is still characterized by overall stability, although our customers increasingly perceive the weak European demand situation. Focused market development to secure market share and cost reductions therefore remain top priority. In regard to raw material prices we assume continuity from today's perspective. Due to the expected lower capacity utilization at MM Karton (1st half of 2004: 97 %) we anticipate period results for the 2005 first half-year to be below last year's record level. The acquisition strategy will be continued with a focus on targets in Western and Eastern Europe.

Please find our detailed Interim Report for the 1st quarter of 2005 on the Internet at http://www.mayr-melnhof.com.

Mayr-Melnhof Karton AG Brahmsplatz 6 1040 Vienna Austria ISIN: AT0000938204
WKN: 093820 Official Quotation in Vienna; OTC in Berlin-Bremen, Frankfurt, Hamburg, München und Stuttgart