• SA cities need foreigners

    We need to protect our cities' cosmopolitan nature, says Mzwandile Jacks.

  • Am I a racist?

    Does hating government's arrogance, nepotism and greed make me a bigot, asks Anton Ressel.

  • Recipe for disaster

    Malema's flames of frustration are fuelling white extremism, says Leopold Scholtz.

Loading...
See More

Sappi profit drops on lower selling prices

Feb 06 2013 08:48 Reuters

Company Data

SAPPI LIMITED [JSE:SAP]

Last traded 50
Change 0
% Change -1
Cumulative volume 606744
Market cap 0

Last Updated: 17-04-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Sappi swings to profit

Sappi to retool mill for coated paper

Sappi third-quarter loss widens

Sappi prices $700m notes offering

Sappi puts debt cut before investment

Sappi mothballs Tugela Mill

 

Johannesburg - Sappi [JSE:SAP] posted a fall in first-quarter profit on Wednesday, hit by lower paper and pulp selling prices, and said it expected market conditions to remain tough.

Sappi, the world's largest maker of fine paper used in glossy magazines, reported diluted headline earnings per share of 3 US cents for the three months to the end of December from 8 US cents a year earlier.

The company said operating profit, excluding special items, fell to $73m from $100m last year.

Sappi said market conditions for its paper business were expected to remain tough, particularly in Europe, and that its second quarter operating profit excluding special items was likely to be below the first quarter.

The global paper industry is struggling to recover from a slump caused by sluggish demand and over capacity and Sappi has turned its focus into higher margin businesses such as specialised cellulose to boost its earnings.

The company, which is also the world's top producer of chemical cellulose, is currently investing $500m in boosting its chemical cellulose capacity to more than 1.3 million tonnes a year.

Sappi produces chemical cellulose from its own woods for conversion into raw materials for clothing, plastics, food and pharmaceutical products.  

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

sappi

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Must see! The most luxurious dog house!

This dog house comes with a treadmill and hot tub, you have to see it!

 
 

Luxury living

WIN!
Ridiculous demands people with too much money make
8 of the priciest places to dock your yacht
Habits of the world’s richest people

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Government’s call for the private sector to add power to the grid is:

Previous results · Suggest a vote

Loading...