DS Smith raises corrugated prices

Weaker market conditions and high energy costs have impacted on DS Smith's packaging margins as the company implements a further price increase for corrugated products.

In a pre-close trading update, the packaging supplier said its planned profit growth for office products has also been hit by "a highly competitive environment".

However, sales in the sector have grown strongly and in the UK the company said it continues to make progress in raising efficiency.

The price increases are being implemented to recover the most recent rise in input costs. No further information was available regarding the increase or the products affected.

Elsewhere, DS Smith said the project to commission the lightweight corrugated case material machine at the company's New Thames mill in Kent remains on schedule. The mill was acquired from M-real for £60m in February this year.

DS Smith said it expects to achieve a "robust" performance in 2008/09, despite the level of demand in markets and trends to input costs.

Its results for the six months to 31 October 2008 will be announced on 3 December.