May 08, 2007. /Lesprom Network/. Sappi Limited posted on May 8, 2007 sales for the second quarter ended March 2007 of $1.32 billion compared to $1.26 billion for the corresponding period a year ago. Sales for the half-year ended March 2007 rose to $2.59 billion year-on-year from $2.4 billion. Operating profit in the second quarter 2007 increased by approximately 100% to $117 million from $59 million in second quarter 2006. EBITDA in the quarter was $211 million compared to $158 million a year earlier. Commenting on the results, Sappi chairman, Eugene van As, said: "We are pleased that the operating performance of the group continued to improve in the quarter. Cash generated by operations of $175 million was approximately 50% higher than a year ago. The operating improvement was led by the Forest Products business which benefited from strong pulp prices and a weaker rand against the US dollar compared to a year ago. We experienced steady demand for coated fine paper in our major markets but the profitability of our European and North American regions has lagged largely as a result of high input costs. Significantly we realized higher coated fine paper prices in Europe during the quarter, reversing the long trend of declining prices. " Looking forward, van As commented: "The demand for all our products is strong and pulp prices have recently risen again, but coated fine paper operating margins remain low. Global capacity utilization for coated fine paper remains at a high level; however, profitability in the sector does not yet reflect the improved market fundamentals. We expect to see further coated fine paper price increases before the end of this financial year to restore margins. In North America the implementation of duties against Asian imports is likely to lead to higher prices of certain coated fine paper. The forest products business is performing well and we expect further improvements particularly in Sappi Kraft. We continue to focus on the reduction of costs, which remain a challenge. We expect further improvement in underlying earnings for the second half of the year." A global leader in the pulp and paper industry, Sappi Limited, headquartered in Johannesburg, South Africa, 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. 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. Sappi has manufacturing operations in nine countries on four continents, sales offices in some 50 countries and customers in over 100 countries around the world.