* Q3 diluted headline loss at 20 U.S cts per share
* Q3 operating profit steady at $60 mln
* Sees tough market conditions ahead
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JOHANNESBURG, Aug 3 (Reuters) – South African paper maker
Sappi said on Friday its third-quarter loss widened by
54 percent, hit by slow demand and planned annual maintenance
shutdowns, and the company expected market conditions to remain
tough.
Sappi, the world’s largest maker of fine paper used in
glossy magazines, said diluted headline loss per share for the
quarter to end-June totaled 20 U.S. cents, compared with a loss
of 13 U.S. cents a year earlier.
Headline earnings are the main profit gauge in South Africa
and exclude certain one-off, financial and non-trading items.
The company said operating profit, excluding special items,
was steady at $60 million from the same period last year.
The global paper industry is struggling to recover from a
slump caused by sluggish demand and overcapacity and Sappi said
market conditions would remain tough.
“Trading conditions are expected to be weaker than a year
ago, with lower volumes for most of our products and pricing,
particularly for pulp, to remain under pressure,” it said in a
statement.
Continued…
