Europa

“Following a year in which various actions and strategies were initiated, primarily involving extensive restructuring charges and asset impairments, the group achieved a profit for the period of US$45 million (Q1 2011 US$37 million) and EPS of 9 US cents (Q1 2011 7 US cents) in the first quarter of the 2012 financial year.

Operating profit excluding special items for the quarter (US$127 million) more than doubled compared to a year earlier (US$54 million) and on a per week basis was at the same level as our first financial quarter ended December 2010

Commenting on the results, Sappi Chief Executive Officer Ralph Boëttger said: “The improving trend in operating performance continued in the quarter, with the European and North American businesses in particular showing good improvement. The group achieved a net profit for the period of US$58 million...

Operating profit for the quarter was impacted as expected by planned annual maintenance shuts at a number of our major pulp mills and seasonal factors. In addition, weaker than expected demand for coated woodfree paper in Europe resulting from continuing uncertainty in economic conditions unfavourably affected operating profit

As you are aware, Sappi’s business strategy is built on four pillars, namely fixing the underperforming businesses; maintaining the good performance of the other businesses; investing in areas of high growth; as well as careful balance sheet, debt and cash-flow management.

Sappi continued its improving trend in operating performance for 2011. Sales for the year increased 11%, almost entirely as a result of higher prices in US Dollar terms. Operating profit excluding special items was US$404 million for the year, up 19% compared to 2010.

2013 is an important transitional year as specialised cellulose capacity is expanded.  The group performance for the quarter was impacted by generally lower selling prices for pulp and paper.

Results for the third quarter ended June 2012 in line with expectations despite tough market conditions. Sappi remains focused on debt reduction, chemical cellulose expansion.

The Specialised Cellulose and North American businesses continue to perform well and the investments in the conversions at the Ngodwana and Cloquet Mills have progressed according to plan.

Sappi Limited concluded an agreement to sell its entire 34% shareholding in the Jiangxi Chenming Paper Company Limited (JXCM), situated in Nanchang City, Jiangxi Province, China, for US$ 41,58m to the Shandong Chenming Paper Holding Company.