Sappi has released its for Q1 2014 financial report. Highlights from the summary include:
- Profit for the period US$18 million (Q1 2013 US$12 million)
- EPS excluding special items 2 US cents (Q1 2013 3 US cents)
-EBITDA excluding special items US$147 million (Q1 2013 US$159 million)
- Net debt US$2,348 million (Q1 2013 US$2,095 million)
Commenting on the result, Sappi (JSE: SAP) Chief Executive Officer Ralph Boettger said:
"The group returned to positive earnings in the quarter with an EBITDA excluding special items of US$147 million, an operating profit excluding special items of US$60 million and a profit for the period of US$18 million.
"We continue to generate good returns in the Specialised Cellulose business and the dissolving wood pulp market experienced strong demand in an increasingly competitive market. Conditions are generally difficult in the global graphic paper markets, in line with our expectations in Europe and more challenging than anticipated in North America.
"The past year has reinforced the importance of our strategy to reposition Sappi for growth, higher margins, improved profitability, and with less reliance on graphic paper. The two major dissolving wood pulp conversion projects are both now contributing to earnings and profitability, whilst the paper businesses, although dealing with difficult market conditions, continue to generate cash that will enable us to reduce debt.
