May 8 (Reuters) - Packaging firm Mondi ( MNODF ) reported

a sequential increase in first-quarter profit on Thursday, as

cost cuts and fewer maintenance shutdowns helped offset the

industry-wide subdued demand, and said the direct impact of

tariffs was limited.

The group's shares were up about 3.3% at 1,146.5 pence.

Mondi ( MNODF ) is banking on price hikes to bolster it from this

quarter and is also ramping up capacity for its sustainable

packaging products.

Mondi ( MNODF ) CEO Andrew King cautioned of the direct and indirect

impacts of rising trade tensions on an industry that has been

trying to recover from a slowdown following a pandemic-driven

boom.

"While the direct impact of announced tariffs on our

operations is limited, we remain mindful of the potential

second-order impacts that could affect trade flows, consumer

confidence and supply chains," King said in a statement.

Last month, Packaging Corp of America ( PKG ) forecast

current-quarter profit below expectations as tariffs both hit

demand and led to higher freight and logistics costs.

Mondi ( MNODF ) said its reported underlying earnings before interest,

taxes, depreciation, and amortisation rose to 290 million euros

($327.2 million) in the first quarter from 261 million euros in

the fourth quarter.

Jefferies analysts said Mondi ( MNODF ) looks well-positioned for

strong earnings growth and an upside to free cash flow "when

packaging ultimately recovers."

($1 = 0.8863 euros)