Nov. 9, 2009 (PR Newswire) -- JOHANNESBURG, Nov. 9 /PRNewswire-FirstCall/ --
-- Net cash generated US$225 million
-- Refinancing completed; improved liquidity and extended maturities
-- Saiccor Mill ramp up near full capacity at quarter end
-- Stronger Rand impacted SA business unfavourably
-- Return to operating profit excluding special items
-- Basic loss per share 20 US cents (unfavourably impacted by 18 US cents
special items)
-- Acquisition synergies exceed target
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Summary
Quarter ended Year ended
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Sept June Sept Sept Sept
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
Key figures: (US$ million)
Sales 1,553 1,316 1,519 5,369 5,863
Operating (loss) profit (129) (7) 25 (73) 314
Special items - losses (gains)* 167 (6) 64 106 52
Operating profit (loss)
excluding special items 38 (13) 89 33 366
EBITDA excluding special items * 150 93 180 431 740
Basic (loss) earnings per share
(US Cents) (20) (12) (9) (37) 28
Net debt* 2,576 2,770 2,405 2,576 2,405
Key ratios: (%)
Operating (loss) profit to sales (8.3) (0.5) 1.6 (1.4) 5.4
Operating profit (loss)
excluding special items to sales 2.4 (1.0) 5.9 0.6 6.2
Operating profit (loss)
excluding special items to
Capital Employed (ROCE)* 3.3 (1.1) 8.5 0.8 9.1
EBITDA excluding special items
to sales 9.7 7.1 11.8 8.0 12.6
Return on average equity (ROE)* (21.4) (12.7) (7.8) (10.4) 6.0
Net debt to total capitalisation* 58.9 57.5 60.0 58.9 60.0
* Refer to the published results for details on special items, the
definition of the terms, the reconciliation of profit/loss for the
period to EBITDA excluding special items.
The table above has not been audited or reviewed.
Commenting on the results, Sappi (NYSE: SPP) chief executive officer Ralph Boettger said:
"As economic conditions remained weak in our major markets we have taken decisive action in all our businesses, resulting in a return to operating profit excluding special items in our North American and European businesses in the quarter and progress towards a return to operating profit excluding special items in Southern Africa. The group met its expectation of a return to operating profit excluding special items for the quarter.
We are also pleased that cash flow for the group was again strong for the quarter with net cash generated of US$225 million.
The integration of the Acquisition progressed well. Achievement of synergies to September 2009 was 73 million euro (annualised rate of 97 million euro), which exceeded our nine month target of 60 million euro, and we remain on track to achieve the previously announced 120 million euro of annual synergies within three years.
Operating profit excluding special items was US$38 million compared to US$89 million in the equivalent quarter last year. This represents a significant turnaround from the previous quarter's operating loss excluding special items of US$13 million. The North American and European businesses, which had improved volumes and lower costs, were key to the turnaround. The Southern African businesses recorded a loss as a result of weak domestic demand, a stronger Rand/US Dollar exchange rate which resulted in both lower export revenue and downward pressure on domestic prices as a result of increased competition from imports. In addition, operations were interrupted for two weeks, particularly at the Saiccor Mill, as a result of an industry-wide strike over wages.
