Sappi recently reported financial results for its second fiscal quarter and half-year ended March 2015. Steve Binnie, Sappi's Chief Executive made the following comments:
"Operating performance in the quarter was in line with our expectations and the equivalent quarter last year. The group generated EBITDA, excluding special items, of US$170 million, operating profit excluding special items of US$104 million and profit for the period of US$56 million. Earnings per share for the quarter were 11 US cents, compared with 6 US cents (including a gain of 1 US cent in respect of special items) in the equivalent quarter last year.
"During the quarter we repaid our 2018 and 2019 bonds through the issue of a new €450 million seven-year bond, with a coupon of 3.375%, and through a drawing from the European revolving credit facility. That facility was also renewed and increased to €465 million (previously €350 million).
"Net debt of US$1,916 million declined by US$124 million from the prior quarter, as a result of the cash generated from operations, lower working capital and favourable exchange rates on the translation of our debt.
"We expect operating performance for the year will be broadly similar to 2014 despite a number of significant once-off impacts from various capital projects. At current exchange rates, the translation of Euro and Rand results to Dollars may have an impact on group results. Nevertheless, earnings per share excluding special items are expected to be substantially better than that of the prior year."
