Sappi's fiscal Q2 profit increases to US$32M from US$2M in year-ago period on 4.7% year-over-year increase in sales to US$1.57B; focus continued on lowering cost, optimizing sales and operating performance improved in all three operating regions
May 12, 2014
– Highlights for the quarter
· Strong cash flow generation
· Good performance from South African business
· Profit for the period US$32 million (Q2 2013 US$2 million)
· EPS 6 US cent (Q2 2013 0 US cents)
· EBITDA excluding special items US$171 million (Q2 2013 US$126 million)
· Net debt US$2,248 million (Q1 2014 US$2,380 million)
Commenting on the result, Sappi Chief Executive Officer Ralph Boëttger said:
The past quarter saw an improvement in the operating performance of all three of our operating regions, despite tough market conditions overall. The improving trend in operating performance continued for the quarter, with EBITDA excluding special items of US$171 million, operating profit excluding special items of US$95 million and profit for the period of US$32 million. There were no major special items for the quarter.
Continued emphasis on lowering cost and optimising sales in both the coated paper and dissolving wood pulp markets have enabled us to compete effectively. Looking forward, we will continue to take actions in North America, Europe and Southern Africa to improve our competitiveness and enable us to reduce debt.
Our outlook for the year is one of significantly improved performance for the 2014 financial year when compared to 2013.
Industry Intelligence editor's note: In an omitted table, Sappi Ltd. reported fiscal second-quarter 2014 sales of $1.573 billion compared to fiscal second-quarter 2013 sales of $1.503 billion.