Aug 06, 2007. /Lesprom Network/. Sales for the quarter ended June 30 were $1.3 billion compared to $1.2 billion in the prior year period. Operating profit was $87 million versus loss of $34 million a year before. EBITDA rose three times to $182 million from $62 million in April-June 2006. Earnings per share were $0.23 versus loss per share of $0.23 a year before. Commenting on the results, Sappi chairman, Eugene van As, said: "The performance of the business improved significantly in the quarter compared to a year earlier in a quarter which is usually slower than our second and fourth fiscal quarters. Cash generated by operations of $177 million was $110 million higher than a year ago and operating profit for the quarter was $87 million compared to a loss of $34 million a year ago. "The forest products business again showed strong performance, supported by pulp prices which strengthened further in the quarter. The North American business had a further recovery in margin for the quarter, but we did not realize the full benefit of the higher coated fine paper prices in Europe, partly as a result of an increase in the volume we exported from Europe." Looking forward, van As commented: "We see good demand for our products on a global basis and an improving supply demand balance in our major markets. "The preliminary introduction of countervailing and anti-dumping duties in the USA against certain Asian importers last quarter is likely to alter the trade flows and to provide some support for improved price levels in the USA. "The extent of our price increase in Europe has not met our initial expectation and still does not compensate for the increases in input costs; however, the end of the downward pricing trend and the continued growth of demand provide the opportunity for further coated fine paper increases. Most of the industry has announced coated fine paper price increases for September. "We expect the trend of improving underlying earnings to continue next quarter." A global leader in the pulp and paper industry, Sappi Limited conducts its business through two business units, Sappi Fine Paper and Sappi Forest Products. Sappi Fine Paper, operating in Europe, North America and South Africa, produces a wide range of coated fine paper brands with an international reputation for quality and innovation. The company also produces a range of uncoated graphic and business papers, coated and uncoated specialty papers, as well as casting release papers. Sappi Forest Products owns or manages approximately 540 000 hectares of plantations through Sappi Forests; is a leading Southern African fully integrated pulp, packaging paper and newsprint business through Sappi Kraft; and is the world's leading producer of chemical cellulose used in the manufacture of viscose fibre through Sappi Saiccor; Sappi Trading, based in Hong Kong, operates a trading network for the international sales and distribution of the products of the two divisions outside their core operation regions.