Papermaker Sappi on Thursday posted full-year basic earnings per share (EPS) of 89 United States cents after a loss in the previous comparable period, citing improved margins and higher prices for its products.
For the fourth quarter to end in September, the world’s largest producer of fine paper posted a basic EPS of 27 US cents. It had posted basic EPS of 23 US cents in the year-ago period.
Despite ongoing pressure from high timber, pulp and energy costs, sales for the year grew 7% to $5,3-billion and operating profit excluding special items increased to $313-million from $91-million.
”For the year, there has been a continuing trend of improvement in operating performance quarter by quarter since the fourth quarter of 2006,” Sappi chief executive Ralph Boettger said.
”Of concern is that the fine paper margins and returns are still well short of acceptable levels and that input costs were again high, including wood, chemicals and energy costs.”
Sappi shares were trading 1,8% down at 7.40am GMT at R95,35, compared to a 1,77% decline in the Johannesburg top-40 index. – Reuters