This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Sappi Limited Results For The First Quarter Ended 27 December 2009

JOHANNESBURG, Jan. 28 /PRNewswire/ --

  • Operating profit excluding special items increased to US$81 million (Q1 2009: US$25 million)
  • General improvement in demand for fine paper and pulp
  • Increased pulp prices; favourable for Southern African and North American businesses, but unfavourable for European business
  • Basic loss per share 10 US cents (unfavourably impacted by 11 US cents special items)
  • Cash generated from operations US$245 million (Q1 2009: US$95 million); net cash outflow US$30 million (Q1 2009: outflow US$121 million)


                                                   Quarter ended
                                        Dec. 2009    Dec. 2008 Sept. 2009
                                         --------    --------  ---------
    Key figures: (US$ million)
    Sales                                    1,620      1,187      1,553
    -----                                    -----      -----      -----
    Operating profit (loss)                      1         57       (129)
    -----------------------                    ---        ---       ----
          Special items – losses
           (gains)*                             80        (32)       167
          ----------------------               ---        ---        ---
          Operating profit excluding
           special items                        81         25         38
          --------------------------           ---        ---        ---
          EBITDA excluding special items*      193        106        150
          ------------------------------       ---        ---        ---
    Basic (loss) earnings per
     share (US cents)                          (10)         6        (20)
    -------------------------                  ---        ---        ---
          Net debt*                          2,581      2,497      2,576
          ---------                          -----      -----      -----
    Key ratios: (%)
    Operating profit (loss) to sales           0.1        4.8       (8.3)
    --------------------------------           ---        ---       ----
          Operating profit excluding
           special items to sales              5.0        2.1        2.4
          --------------------------           ---        ---        ---
          Operating profit excluding
           special items to Capital
           Employed  (ROCE)*                   7.5        2.6        3.3
          --------------------------           ---        ---        ---
          EBITDA excluding special items
           to sales
          Return on average equity
           (ROE)*                             11.9        8.9        9.7
          ------------------------            ----        ---        ---
          Net debt to total
           capitalisation*                   (11.6)       5.3      (21.4)
          -----------------                  -----        ---      -----
                                              60.0       57.3       58.9
                                              ----       ----       ----

*        Refer to the published results for details on special items, the definition of the terms, the reconciliation of profit/loss for the period to EBITDA excluding special items.

The table above has not been audited or reviewed.

Commenting on the results, Sappi (NYSE: SPP)  chief executive Ralph Boettger said:

"The operating results excluding special items for the group improved substantially compared both to the equivalent quarter last year and to the prior quarter. Demand continued to improve for our major products with a steady improvement in demand for coated woodfree paper. Paper pulp prices and prices for chemical cellulose have continued to rise, driven by improved demand in general and good demand from China. Demand for coated mechanical paper has, however, not recovered and demand conditions in the South African domestic market remained challenging.

"The Fine Paper business results excluding special items improved compared to a year earlier but fell short of the prior quarter primarily as a result of seasonal factors. The Southern African business returned to profitability excluding special items largely as a result of the improving performance of the expanded Saiccor Mill.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SPP $1.91 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs