BUZZ-Mondi: retreats from record after Q1 profit decline
** South African paper and packaging firm Mondi (EUREX: MDIF.EX - news) -3.2%, retreating from a record hit earlier this week
** Mondi (Frankfurt: KYC.F - news) posts 6 pct fall in underlying operating profit for Q1 vs comparable prior year period
** Davy says strong volume demand in period was insufficient to offset higher input costs & containerboard price increases were implemented too late in quarter to have a meaningful impact
** But broker highlights Mondi Group's shares have been among best performers in European packaging space YTD & says Thursday's trading update justifies this despite the YoY decline in Q1 profits
** Says strong volume and pricing dynamics across a number of key divisions will help to support further increases in earnings forecasts as the year progresses (rates stock 'Outperform')
** Mondi shares up 22 pct YTD (as of Wednesday's close)
** Vontobel Asset Management's Roger Merz has been buying Mondi shares recently
** He highlighted its strategy of buying weaker competitors and taking capacity off the market, letting it hike prices in an industry where lack of ability to dictate prices is the norm
** Mondi fourth top faller on FTSE 100 & among worst performers on Stoxx 600 on Thursday (Reuters Messaging: tenzin.pema1.thomsonreuters.com@reuters.net)