Sappi’s operating performance in the 3Q ended June 2018 was in line with previous guidance, and the group generated EBITDA excluding special items of $155 million. Profit for the period declined from $58 million to $51 million due to an increased depreciation expense following the higher capital expenditure activity.

Packaging

Sappi's net profit declined to $51 million in 3Q

Sappi’s operating performance in the 3Q ended June 2018 was in line with previous guidance, and the group generated EBITDA excluding special items of $155 million. Profit for the period declined from $58 million to $51 million due to an increased depreciation expense following the higher capital expenditure activity, as the company says in the press release received by Lesprom Network.

Sappi CEO Steve Binnie, commenting on the group’s performance, said: “Our 3Q operating performance was in line with previous guidance with earnings (EBITDA ex special items) flat at $155 million compared to a year ago. The 3Q is seasonally and historically our weakest quarter due to the slow-down in business activity during the Northern Hemisphere summer holiday period and Sappi’s choice to use this quarter to undertake major annual maintenance shuts. A strong performance by our European operations was offset by a number of once-off operational and production issues in our South African and North American businesses.”

Sappi is a global diversified woodfibre company focused on providing dissolving wood pulp, specialities and packaging papers, printing and writing papers as well as biomaterials and biochemicals.