Operating profit excluding special items US$8 million (Q3 2012 US$60 million)
Loss for the period US$42 million (Q3 2012 US$106 million loss)
Loss per share 8 US cents (Q3 2012 loss of 20 US cents)
Net finance costs US$42 million (Q3 2012 US$141 million)
Net debt US$2,297 million (Q3 2012 US$2,213 million)
The
past quarter saw a further deterioration in European paper industry conditions,
exacerbating an already weak market, and demand is expected to remain subdued.
Input costs, particularly pulp, remain high and we do not expect to see any
price increases in our major paper grades in the coming quarter.
THE
QUARTER UNDER REVIEW
This
seasonally slow quarter saw a significant decline in demand for our major paper
grades, with total European industry deliveries of coated woodfree and coated
mechanical paper down 8% year-on-year for the quarter. Our total sales volumes
were 6% below that of the equivalent quarter last year despite good growth in
specialities volumes. Average prices realised were slightly higher than in the
previous quarter, as a result of marginal price increases for coated woodfree
paper, but remain on average below those of the equivalent quarter in the prior
year.
In
the North American business, operating profit for the current quarter was
negatively impacted by an estimated US$12 million due to 22 days of incremental
downtime taken for the Cloquet pulp mill conversion project and related ramp-up
of operations. Coated paper sales volumes were essentially flat year-on-year;
however the average net sales price per ton was 4% lower than in the prior year
due to a competitive local market and increased import pressure. Prices
appeared to have stabilised during the quarter and we expect to realise some
price increases on economy sheets and web products over the coming months.
