![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
Qnb Fin 24 | LSE:79CK | London | Medium Term Loan |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
RNS Number:5637Q Sappi Ld 28 January 2002 Sappi Press Release Johannesburg, 28th January 2002 Geographic spread helps Sappi in difficult first quarter Sappi, the world's leading producer of coated fine paper, today announced results for the first quarter 2002. Highlights - Impact of September 11th felt in quarter, but group holds up well - Weak performance by North American operations partly offset by robust performances from Europe and South Africa - Performance dented by one off maintenance shuts of major profit contributing mills - Strong balance sheet maintained Commenting on the results, Sappi Executive Chairman, Eugene van As, said: "As anticipated, the Group continued to experience difficult market conditions during the first quarter, but held up well overall. Much of the impact of September 11th was felt in this quarter with the North American market particularly weak. The results were further impacted on by the fact that two of our largest operations took their 30-month maintenance shuts in the period. This impact, which would previously have been spread over 30 months, was reflected in the quarter as per the new International Accounting Standard (IAS) guideline. However, we benefited from the geographic spread of our assets as both Europe and South Africa continued to perform well despite challenging trading conditions in their markets, this offsetting some of the difficulties in North America." Results for the Quarter These difficult conditions lead to sales volumes which were 10% below the same quarter last year, excluding Mobile (which was closed at the end of last year). Average prices in US$ were 14% lower than a year ago. This reflects in part the change in other currencies vs. the US$ and in part real price reductions. However, manufacturing costs continued to be well controlled. In this environment the group did well to achieve an EBITDA margin of 17% which lead to net profit before exceptional items of US$31 million, although this was 62% below last year. Earnings per share before exceptional items were 14 US cents. After one-time adjustments for refinancing the North American 14% debentures and the closure of Transcript Mill, net profit was US$22 million and basic earnings per share were 10 US cents. Despite these adverse market conditions, the group generated a robust cash flow (EBITDA) for the quarter of US$148 million. Capital expenditure continued to be below depreciation and amounted to US$67 million. The group continues to maintain a strong balance sheet, although net debt increased slightly in September from US$1,128 million to US$1,156 million. The net debt to total capitalisation ratio was affected by the US$ value of our Euro and Rand assets, but is an acceptable 35%. This ratio will vary from time to time with currency changes. Net finance costs for the quarter were US$25 million, which included the cost of marking foreign exchange contracts to market and other foreign exchange losses of US$7 million. The group declared a dividend of 26 US cents per share for the year ended September 2001, which was paid to shareholders on 14 January 2002. Whilst the dividend increase in US$ terms was modest, the dividend showed the excellent Rand hedge quality for South African shareholders as it increased in Rand terms by approximately 65%. Fine Paper Commenting on the fine paper division's overall performance, Bill Sheffield, Fine Paper CEO said: "Market conditions for Sappi Fine Paper were difficult in the quarter. In addition to the general global economic slowdown, the recession in the US and the additional adverse impact of 11 September had a strong detrimental effect on our business. These conditions resulted in a 24% fall in sales compared to last year. Despite this, the division's operating margin fell only 3.3 percentage points. We continued to curtail production in Europe and North America to balance supply with demand". "Against very tough market conditions the division held up well. The North American business was particularly affected, but our ability to supply part of the US market with high quality European paper at good margins once again proves the benefits of our strategy to have well-invested assets in each major global market". The closure of the Transcript Mill is progressing well, with a complete exit from the carbonless business expected by March 2002. He went on to say: "The outlook for our European and South African businesses is stable. In North America we believe the situation has bottomed. In both Europe and North America, consumer inventories are extremely low and we are well positioned to benefit from the upturn in demand when it comes". Forest Products John Job, Forest Products CEO commented: "Our southern African markets were stable during the quarter and both our forest products and global fine paper businesses remain strong Rand hedges for the group. Local costs were driven down in US$ terms and local selling prices now lag those of imported competitors. Sales volumes dropped 10% on last year, but the operating margin at 16% and return on net operating assets at 11.9% were both good under the adverse market conditions. South African demand for pulp and paper products had been reasonably strong during the quarter, however export markets continued to be depressed. Dissolving pulp markets remained soft and were characterised by high customer inventories and low prices. There had been some firming in international unbleached kraft pulp markets recently but generally, prices remained steady, albeit at low levels. Referring to efforts to secure the future of Sappi's Usutu pulp mill in Swaziland, Job indicated that agreement had been reached with the labour union and the restructuring would follow in the next quarter. "We are confident that completion of this restructuring will secure Usutu's position as a competitive and profitable mill," he said. Job confirmed that the outlook for the Forest Products business is better for the balance of the year. Any improvement in world economic conditions will have an immediate impact. In the short term, the benefit of the weaker Rand will improve margins and enable the division to maintain its planned US$ earnings. Outlook Sappi expects order levels to improve as the year progresses. The US economy has bottomed and may rebound. Evidence exists that end-user consumption of coated woodfree paper has declined much less over the past year than shipments and that much of the decline in apparent demand stemmed from a reduction of inventory in the supply chain. Shipments are expected to rise modestly to match consumption and there is the potential for a significant rebound in demand if merchants and end-users start to bring their inventories back up to normal levels. Commenting on the outlook, Eugene van As said: "We operate in a challenging environment, but the geographic spread of our assets will continue to allow us to take advantage of strong markets and weak currencies, and reduce the impact of fluctuations in regional demand on our business. "We are cautiously optimistic" van As indicated. "Barring further deterioration of the global economic outlook, we expect earnings per share for the rest of the year to improve and reach a similar level to those seen in the last financial quarter of our 2001 year." ends FORWARD-LOOKING STATEMENTS Certain statements in this report that are neither reported financial results nor other historical information, are forward-looking statements, including, but not limited to statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors, that could cause actual results and company plans and objectives to differ materially from those expressed or implied in the forward-looking statements (or from past results). Such risks, uncertainties and factors include, but are not limited to the highly cyclical nature of the pulp and paper industry (and the factors that contribute to such cyclicality, such as levels of demand, production capacity, production and pricing), adverse changes in the markets for the group's products, consequences of substantial leverage, changing regulatory requirements, unanticipated production disruptions, economic and political conditions in international markets, the impact of investments, acquisitions and dispositions (including related financing) and currency fluctuations. The company undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise. Released on behalf of Sappi by Brunswick, telephone +27 (0) 11-442 8803 For further information contact: Andre F Oberholzer, Corporate Affairs and Communication Manager Sappi Limited +27(0) 11-407 8044 work (direct) +27(0) 11-403 8236 fax +27(0) 82-906 0638 cellular andreo@za.sappi.com Paul Leslie-Smith, Group Investor Relations Manager Sappi Limited +27(0) 11-407 8391 (direct) +27(0) 11-403 1493 fax +27(0) 82-905 0020 cellular paulls@za.sappi.com SAPPI LIMITED Summary December 2001 Quarter ended December September December 2001 2001 2000 _____________________________________________________________________________ Sales (US$ million) 832 998 1,115 Operating profit (US$ million) 65 91 143 EBITDA (US$ million) 148 175 237 Operating profit to sales (%) 7.8 9.1 12.8 EBITDA to sales (%) 17.8 17.5 21.3 Operating profit to average net 8.8 11.1 15.8 assets (%) EPS before exceptional items 14 23 34 (Headline) (US cents) Basic EPS (US cents) 10 20 34 Return on equity (%) 6.3 9.9 20.1 Net Debt (US$ million) 1,156 1,128 1,269 * Before Mobile closure costs SAPPI LIMITED Group income statement Unaudited Quarter ended US$ million December 2001 December 2000 % change ______________________________________________________________________________ Sales 832 1,115 (25.4) Cost of sales 689 882 __________________________________ Gross profit 143 233 (38.6) Selling, general & 78 90 administrative expenses __________________________________ Operating profit 65 143 (54.5) Non-trading loss 12 1 Net finance costs 25 24 ____________________ Net paid * 32 32 Capitalised (7) (8) ____________________ __________________________________ Profit before tax 28 118 Taxation - current (9) 23 - deferred 15 13 __________________________________ Net profit 22 82 __________________________________ EBITDA 148 237 (37.7) __________________________________ Basic earnings per share 10 34 (US cents) Earnings before exceptional items (Headline earnings) per share 14 34 (US cents) Weighted average number of 229.7 238.9 shares in issue (millions) Diluted earnings per share 9 34 (US cents) Diluted earnings before exceptional items (Headline earnings) per share 13 34 (US cents) Weighted average number of shares on fully diluted basis (millions) 233.2 245.0 Calculation of Earnings before exceptional items (Headline) net of tax Net profit 22 82 Mill closure costs 4 - Debt restructuring costs 6 - Decrease in provisions (1) (1) __________________________________ Earnings before exceptional 31 81 items (Headline) __________________________________ * Includes foreign exchange losses of US$ 7 million (December 2000: US$ 1m) SAPPI LIMITED Group balance sheet Unaudited Audited US$ million December 2001 September 2001 ______________________________________________________________________________ ASSETS Non-current assets 3,076 3,346 ________________________ Property, plant and equipment 2,693 2,890 Plantations 247 324 Deferred taxation - 4 Other non-current assets 136 128 ________________________ Current assets 1,010 1,160 ________________________ Cash and cash equivalents 245 445 Trade and other receivables 263 202 Inventories 502 513 ________________________ _________________________ Total assets 4,086 4,506 _________________________ EQUITY AND LIABILITIES Shareholders' equity Ordinary shareholders' interest 1,287 1,503 Minority interest 2 3 Non-current liabilities 1,502 1,640 _______________________ Interest-bearing borrowings 912 1,014 Deferred taxation 355 385 Other non-current liabilities 235 241 _______________________ Current liabilities 1,295 1,360 Interest-bearing borrowings and bank _______________________ overdraft 489 559 Other current liabilities 806 801 _______________________ _________________________ Total equity and liabilities 4,086 4,506 _________________________ Number of shares in issue (millions) 229.7 229.5 Net debt (US$ million) 1,156 1,128 Net debt to total capitalisation (%) 35.2 30.4 Net asset value per share (US cents) 715 821 SAPPI LIMITED Group cash flow statement Unaudited Quarter ended US$ million December 2001 December 2000 _____________________________________________________________________________ Cash generated by operations 130 231 Movement in working capital (100) (80) Net finance costs (32) (32) Taxation paid (1) (1) ______________________ Cash retained from operating activities (3) 118 Cash effects of investing activities (63) (94) ______________________ (66) 24 Cash effects of financing activities (115) (109) ______________________ Net movement in cash and cash equivalents (181) (85) ______________________ SAPPI LIMITED Group statement of changes in shareholders' equity Unaudited Quarter ended US$ million December 2001 December 2000 ______________________________________________________________________________ Balance - beginning of year 1,503 1,618 Net profit 22 82 Foreign currency translation reserve (193) 17 Revaluation of derivative instruments 14 - Dividends declared - US$ 0.26 (2001: US$ 0.25) per share (60) (60) Net transfers to share purchase trust (share buybacks) 1 (8) _____________________ Balance - end of period 1,287 1,649 _____________________ SAPPI LIMITED Notes to the group results 1. Basis of preparation The group results have been prepared in conformity with South African Statements of Generally Accepted Accounting Practice. The same accounting policies have been followed as in the annual financial statements for September 2001. The financial results for the quarter have been reviewed by the group's auditors, Deloitte & Touche. Their report is available for inspection at the company's registered offices. ______________________________________________________________________________ Unaudited Quarter ended US$ million December 2001 December 2000 _____________________________________________________________________________ 2. Operating Profit Included in operating profit are: Depreciation 72 80 Fellings 7 8 Amortisation 4 6 _____________________________________________________________________________ 83 94 _____________________________________________________________________________ 3. Capital expenditure Fixed assets 62 86 Plantations 5 7 _____________________________________________________________________________ 67 93 _____________________________________________________________________________ Unaudited Audited US$ million December 2001 September 2001 _____________________________________________________________________________ 4. Capital commitments Contracted but not provided 48 78 Approved but not contracted 97 109 _____________________________________________________________________________ 145 187 _____________________________________________________________________________ 5. Contingent liabilities Guarantees and suretyships 73 79 Other contingent liabilities 20 27 _____________________________________________________________________________ SAPPI LIMITED Regional Information Unaudited Quarter ended December December % US$ million 2001 2000 change ______________________________________________________________________________ Sales - Metric tons (000's) Fine Paper - North America 218 328 (33.5) Europe 518 563 (8.0) Southern Africa 73 71 2.8 ______________________________________________________________________________ Total 809 962 (15.9) Forest Products 560 621 (9.8) ______________________________________________________________________________ Total 1,369 1,583 (13.5) ______________________________________________________________________________ Sales Fine Paper - North America 239 395 (39.5) Europe 410 466 (12.0) Southern Africa 48 57 (15.8) ______________________________________________________________________________ Total 697 918 (24.1) Forest Products 135 197 (31.5) ______________________________________________________________________________ Total 832 1,115 (25.4) ______________________________________________________________________________ Operating profit Fine Paper - North America (10) 18 - Europe 39 54 (27.8) Southern Africa 7 6 16.7 ______________________________________________________________________________ Total 36 78 (53.8) Forest Products 22 62 (64.5) Corporate 7 3 133.3 ______________________________________________________________________________ Total 65 143 (54.5) ______________________________________________________________________________ Earnings before interest, tax, depreciation and amortisation charges * Fine Paper - North America 15 46 (67.4) Europe 77 92 (16.3) Southern Africa 9 9 - ______________________________________________________________________________ Total 101 147 (31.3) Forest Products 40 87 (54.0) Corporate 7 3 133.3 ______________________________________________________________________________ Total 148 237 (37.6) ______________________________________________________________________________ Net operating assets Fine Paper - North America 1,085 1,238 (12.4) Europe 1,299 1,428 (9.0) Southern Africa 80 102 (21.6) ______________________________________________________________________________ Total 2,464 2,768 (11.0) Forest Products 657 940 (30.1) Corporate (86) (80) - ______________________________________________________________________________ Total 3,035 3,628 (16.3) ______________________________________________________________________________ * before non-trading loss SAPPI LIMITED Summary rand convenience translation Unaudited Quarter ended December December % 2001 2000 change ______________________________________________________________________________ Sales (ZAR million) 8,364 8,425 (0.7) Operating profit (ZAR million) 653 1,081 (39.5) Profit after taxation (ZAR million) 221 620 EBITDA (ZAR million) 1,488 1,791 (16.9) Operating profit to sales (%) 7.8 12.8 EBITDA to sales (%) 17.8 21.3 Operating profit to average net assets (%) 8.5 16.1 EPS before exceptional items (Headline) 141 257 (45.3) (SA cents) Basic EPS (SA cents) 101 257 EBITDA per share (SA cents) 648 750 (13.6) Net debt (ZAR million) 13,768 9,594 43.5 Net debt to total capitalisation (%) 35.2 32.8 Cash generated by operations (ZAR million) 1,307 1,745 Cash retained from operating activities (30) 892 (ZAR million) Net movement in cash and cash equivalents (1,820) (642) (ZAR million) Exchange rates : Period end rate: US $1 = ZAR 11.9100 7.5600 Average rate: US $1 = ZAR 10.0530 7.5560 Period end rate: US $1 = EUR 1.1321 1.0730 Average rate: US $1 = EUR 1.1192 1.1486 This information is provided by RNS The company news service from the London Stock Exchange
1 Year Qnb Fin 24 Chart |
1 Month Qnb Fin 24 Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions