SKG advises on devaluation in Venezuela
Dublin, London | 11 February, 2013: Smurfit Kappa Group plc (‘SKG’ or the ‘Group’) one of the world’s largest integrated manufacturers of paper-based packaging products with operations in Europe and the Americas, advises that the Venezuelan Government announced the devaluation of its currency, the Bolivar Fuerte (‘VEF’), on 8 February, 2013. The official exchange rate was changed from VEF 4.3 per U.S. dollar to VEF 6.3 per U.S. dollar. As a result of the devaluation the Group will record a reduction in net assets of approximately €142 million in relation to these operations and a reduction in the euro value of the Group’s cash balances by approximately €29 million in Quarter 1, 2013. The impact of the devaluation on the Group’s 2013 pre-exceptional EBITDA is not expected to be material.
About Smurfit Kappa Group
SKG is a world leader in paper-based packaging with operations in Europe and the Americas. SKG operates in 21 countries in Europe and 11 in the Americas. With innovation, service and pro-activity towards customers as its primary focus, SKG is the European leader in paper-based packaging including, corrugated, containerboard, bag-in-box, solidboard, and solidboard packaging. It also has a key position in a number of other product/market segments, including graphicboard, MG paper and sack paper. SKG has a growing base in Eastern Europe, and it is the only large scale pan regional operator in Latin America.
Forward Looking Statements
Some statements in this announcement are forward-looking. They represent expectations for the Group’s business, and involve risks and uncertainties. These forward-looking statements are based on current expectations and projections about future events. The Group believes that current expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Group’s control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements.
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