Turbulent Q3 for Sappi

 

28 July 2005 – Johannesburg (SA): Sappi has posted a net loss of $0.77 per share, compared to an EPS of $0.18 in last year’s Q3, largely on the back of waning demand and cost pressures on raw materials, the company said.

 

Sales fell to $1.14 billion from $1.18 billion a year earlier.

 

The company has also embarked on a restructuring exercise in the US that is expected to result in the lay-off of up to 420 workers.

 

CEO Jonathan Leslie said: "As part of our ongoing business plan to achieve acceptable returns in our North American business, we have decided to restructure our Muskegon Mill, aggressively lower our inventory and reduce headcount in the region by approximately 14 per cent."