Operating profit excluding special items for the 4Q was $70 million compared to $118 million for the equivalent quarter last year and $8 million in the quarter ended June 2013. As a result of impairment and restructuring charges in the quarter, the group incurred a net loss for the quarter. The loss per share for the quarter was 27 US cents (including a charge of 29 US cents in respect of special items) compared to earnings per share of 21 US cents (including a gain of 10 US cents in respect of special items) in the equivalent quarter last year.
Commenting on the key financial highlights of the quarterly and year-end results, Sappi CEO Ralph Boettger said: "2013 was an important transitional year for Sappi with the commissioning of major capital projects and further repositioning of the business. Our strategy to reposition Sappi for growth, higher margins and improved profitability is on track.
"While the group's operating profit excluding special items improved compared to the prior quarter, for the full year it was well below that of the previous year. Market conditions in the graphic paper business, particularly in Europe, were worse than expected, with significant demand declines in both the European local and export markets, and continued downward pressure on selling prices. The operating profit for the year was negatively affected by the once off impact of the dissolving wood pulp conversions at both the Cloquet and Ngodwana pulp mills and the speciality packaging conversion of paper machine 2 at Alfeld Mill.”
"Our profitability in the 2014 financial year is expected to be better than that of 2013 as a result of a larger Specialised Cellulose business, the gradual improvement in performance of our European paper business, an improvement in the profitability of our Southern African paper business and the consistent performance of our North American paper businesses."
Sappi is a global company focused on providing dissolving wood pulp, paper pulp and paper based solutions.