Sappi delivered “robust” full-year and fourth-quarter results on Thursday, based on “strong growth” from speciality packaging and its dissolving wood pulp business. Full-year profit of $338m rose from $319m in 2016, although fourth-quarter profit of $102m lagged the $112m of the matching quarter a year ago. The group further reduced debt in the period, as it continued to reorientate operations away from core fine-coated paper used in advertising materials and upmarket magazines. The focus is on high-margin dissolving wood pulp — used in making clothing and textiles — and specialised packaging products. Capital expenditure in 2018 was expected to increase to $450m as it continued to convert mills in SA, Europe and North America to facilitate greater production of these products, the group said. “The increase in expansionary capital spending during 2018 is focused on higher-margin growth segments including [dissolving wood pulp] and speciality packaging,” said Sappi CEO Steve Binnie. ...
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