Sappi reports Q1 loss on lower prices and shipments, but recovery in certain regions exceeds expectations

摘要

Sappi's performance in the first quarter of its 2021 financial year, which ended on 31 December 2020, did not put the company back on track for success. With sales decreasing by 11 per cent, its operating profits plunged by 70 per cent to $16m year-on-year. Below the line, Sappi posted a net loss of $ 17m, compared with a net profit of $24m in the same period last year. The firm said that this turn of events was the result of lower selling prices for packaging paper and especially for graphic paper, along with a substantial drop in dissolving pulp and graphic paper shipments. Although the graphic paper market enjoyed a demand recovery compared with the previous quarter, especially in North America, deliveries were still down 19 per cent compared with the same quarter one year earlier. Sappi has responded to slow demand by taking commercial downtime and cutting capacity, and curbed output by 125,0001 between October and December. According to Sappi, this downtime was taken entirely in Europe.