The operating challenges for Mayr-Melnhof intensified in Q2 and are also guided to in remain Q3. While Packaging had a better quarter, the dynamics in Karton deteriorated. The good news is that the firm seems flexible enough to rejig its strategic priorities. Also, given the ‘relatively’ better results vs. the bigger European peers, there’s more room to expedite improvement measures. While our estimates are likely to again be slashed, the firm’s long-term potential remains intact.