Antalis’ non-paper businesses (Packaging and Visual Communications) and Arjowiggins’ specialty activities held firm however. Sales came in at Euro 837 million, down 8% or 4% at constant exchange rates. In volume terms, the decline in sales slowed over the quarter as compared to the first two quarters of the year.
Sequana benefited from the fall in overheads resulting from the closure of Arjowiggins plants Dalum and Witcel in 2012 and the planned closure of the Ivybridge plant in early 2014, along with the restructuring of logistics operations at Antalis.
Prices for pulp, chemical products and energy remained high. EBITDA was Euro 24 million for the 3Q, or 2.9% of sales, up Euro 3 million, or 16.5% compared to 3Q 2012.
Consolidated sales for the first nine months of 2013 dropped 8.7% year-on-year to Euro 2,635 million (down 6.5% at constant exchange rates). This decline reflects the combined impact of the fall in printing paper volumes, strong downward pressure on selling prices, and a deterioration in the product mix.
EBITDA totalled Euro 83 million, down 17.4% from Euro 100 million in the first nine months of 2012, giving an EBITDA margin of 3.1%, a slight 0.4 point drop on 2012.
Recurring operating income was Euro 24 million (including a Euro 4.5 million gain arising on changes to pension plans) compared with Euro 45 million for the yearearlier period.
In view of non-recurring restructuring costs (Euro 31 million), finance costs and taxes, the Group generated a net attributable loss of Euro 58 million, compared to a net loss of Euro 54 million in the first nine months of 2012.
Sequana is a major player in the paper industry, boasting leading positions in each of its two businesses Antalis and Arjowiggins.