Sappi posts profits
May 17, 2004 By Pulp & Paper Canada
Where Stora Enso and UPM Kymmene are feeling the effects of profit declines posted in the latest quarter, Sappi has…
Where Stora Enso and UPM Kymmene are feeling the effects of profit declines posted in the latest quarter, Sappi has reported better than anticipated earnings.
The upturn witnessed in the advertising industry has proved profitable for Sappi, as has increased activity at commercial printers in United States. The implementation of new accounting standards, increased Western European demand for fine coated paper and a curtailing of losses in North America have all proved contributing factors to a reversal of three quarters of declining earnings.
The Johannesburg-based pulp and paper maker’s shares stood at 10 U.S. cents for a solid three months, until the end of March. The value is significant when compared with the fact that the December quarter marked a nine-cent loss for the world’s largest fine paper producer. The declivity was the company’s first quarterly loss since it commenced publication of its quarterly results in 1999.
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