Sappi Q1 earnings rise marginally

EPS excluding special items 5 US cents.

Sappi Ltd, the world’s biggest producer of dissolving wood pulp, said first-quarter profit gained 33% as the company benefited from rising paper prices in Europe.

Profit was $24 million in the three months through December, compared with $18 million a year earlier, the Johannesburg-based company said in a Wednesday statement. Net debt declined $340 million to $2.04 billion.

“In this seasonally slower quarter, the performance of the European business improved,” Sappi said. “The improvement was largely as a result of higher average sales prices for coated woodfree paper and lower fixed costs.”

Sappi is increasing its focus on dissolving wood pulp, used to make luxury clothing, sportswear and pharmaceuticals, as the product carries a higher profit margin than paper. The company is planning to reduce debt by about a third to $1.6 billion as it cuts costs.

Sappi shares have gained 17% this year, compared with a 4.7% increased on the FTSE/JSE Africa All-Share Index. That values the company at R25.9 billion.

Highlights for the quarter

– Profit for the period USD24 million (Q1 2014 USD18 million)
– EPS excluding special items 5 US cents (Q1 2014 2 US cents)
– EBITDA excluding special items USD145 million (Q1 2014 USD147 million)
– Net debt USD2,040 million, down USD340 million year-on-year

Read the SENS announcement

COMMENTS   0

Comments on this article are closed.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us: