Spicers’ operating profit falls


19 April 2006 – London (UK): In a trading update, Spicers parent company DS Smith has said profits from its OP segment have dropped mainly due to the effects of lower sales margins and higher costs incurred to overcome service shortcomings, which have only been partly mitigated by improved results in continental Europe.
DS Smith said it expects a full year operating profit from its OP wholesaling company to be about £9 million ($16 million) below the £21.5 million reported for 2004/5. 
The company added that it is accelerating the programme to reduce its UK structural cost base.