Sappi lifts second-quarter earnings

06 May 2008 09:33 - Staff Reporter

Sappi, the world's biggest maker of fine paper, increased second-quarter basic earnings per share to 68 United States cents from 25 US cents a year ago, the company said on Tuesday. Sappi said operating profit excluding special items rose 33% to $97-million in the three months to end-March from $73-million in the year-ago period.

Sappi, the world’s biggest maker of fine paper, increased second-quarter basic earnings per share to 68 United States cents from 25 US cents a year ago, the company said on Tuesday.

Sappi said operating profit excluding special items rose 33% to $97-million in the three months to end-March from $73-million in the year-ago period.

Sales increased 11,8% to $1,47-billion and Sappi said operating profit excluding special items is expected to improve in the current quarter compared with a year ago.

“Our operating performance this quarter improved further, both compared with a year ago and compared with the prior quarter. The performance of our Southern African businesses was supported by good demand, higher prices and a weaker rand against the dollar,” Sappi CEO Ralph Boettger said in a statement.

Boettger said prices for coated fine paper continued to strengthen in most regions in dollar terms and, while market conditions in terms of demand are favourable, Sappi cannot ignore the potential impact of economic slowdown in North America and Europe.—Reuters