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Johannesburg - Paper maker Sappi [JSE:SAP] posted a narrower quarterly loss on Friday, hit again by weak demand in Europe, where it said it plans significant cost cuts over the next three years.
Sappi, the world's largest maker of fine paper used in glossy magazines, reported a loss of 8 US cents per share for its April-June third quarter, compared with a loss of 20c a year earlier.
Sales fell 8% to $1.4bn.
The global paper industry is struggling to recover from a slump caused by sluggish demand and over-capacity, as major consumers in Europe grapple with recession.
The company said it would focus on cost cuts in Europe, where market conditions continued to deteriorate during the quarter.
"Plans are being finalised that will result in significant capacity closure, lower costs and improved operating margins in Europe," it said in a statement.
The company said it would start to see financial benefits from the cuts as early as the 2014 financial year.
Sappi, the world's largest maker of fine paper used in glossy magazines, reported a loss of 8 US cents per share for its April-June third quarter, compared with a loss of 20c a year earlier.
Sales fell 8% to $1.4bn.
The global paper industry is struggling to recover from a slump caused by sluggish demand and over-capacity, as major consumers in Europe grapple with recession.
The company said it would focus on cost cuts in Europe, where market conditions continued to deteriorate during the quarter.
"Plans are being finalised that will result in significant capacity closure, lower costs and improved operating margins in Europe," it said in a statement.
The company said it would start to see financial benefits from the cuts as early as the 2014 financial year.
