Nov 08, 2012. /Lesprom Network/. Sappi's net profit for the year amounted to $104 million compared to a net loss of $232 million in the prior year. The prior net loss included special item losses of $318 million, principally related to the restructuring of the European and Southern African operations, as the company said in the press release received by Lesprom Network. Earnings per share were significantly better, with earnings per share of 20 US cents (including a charge of 10 US cents in respect of special items and once-off refinancing costs) compared to a loss per share of 45 US cents (including a charge of 65 US cents in respect of special items and once-off refinancing costs) in the prior year. Operating profit excluding special items for the quarter was $118 million, a significant improvement when compared to $80 million in the equivalent quarter last year and $60 million in the quarter ended June 2012. Sappi posted a net profit for the 4Q of $107 million off the back of an improved operating performance and lower interest costs as result of the refinancing undertaken in the prior quarter. Earnings per share for the quarter were 21 US cents (including a gain of 10 US cents in respect of special items) compared with a loss per share of 24 US cents (including a charge of 26 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: "Sappi posted a solid set of 4Q and financial year-end results. Operating profit excluding special items for the quarter was ahead of market expectations and for the full year remained at similar levels as last year. This good performance was in spite of challenging market conditions and pulp prices that were substantially lower in Dollar terms which negatively impacted on the Southern African and North American businesses. "The European and North American paper businesses performed well during the quarter, despite tough market conditions, benefiting from our ongoing actions over the past two years to further improve customer service, reduce costs and increase efficiencies. "Overall, the performance of the Southern African business was negatively impacted by the rescheduling of the planned maintenance shut at Saiccor Mill from the 3Q to the 4Q and continued weakness in the South African paper market. However, the South African paper business reduced fixed costs by 20% as a result of the restructuring initiative completed earlier in the year and improved performance compared to the same quarter last year. The business has continued to take action to position itself for improved profitability. The Chemical Cellulose (Specialised Cellulose) business performed well, generating an EBITDA excluding special items margin of 30%. Saiccor Mill also achieved record production volumes in the past year. "I am pleased that we have achieved, a year earlier than initially indicated, our goal of reducing our net debt to below our target of $2 billion.” Sappi Southern Africa, an integrated forest products company, meets the needs of local and international customers through a wide range of products from three divisions: The Paper and Paper Packaging, Chemical cellulose, Sappi Forests.