Low pulp demand, price still affecting Sappi's profits

JSE-listed paper and packaging manufacturer Sappi says a further fall in the dissolving pulp (DP) price by $233/t in the last 12 months had negatively impacted on the company’s earnings and profitability in the quarter ended March 31.

CEO Steve Binnie explains that a strong packaging and specialities performance, along with solid results in the graphics paper segment, was not enough to offset the significant impact of historically low DP prices, as well as lower DP sales volumes.