Sappi Limited Presents at Barclay's High Yield and Syndicated Loan Conference, May-21-2013 02:45 PM. Venue: JW Marriott Chicago, 151 W. Adams Street, Chicago, Illinois, United States. Speakers: Graeme Wild, Group Investor Relations Manager.

Sappi Limited announced unaudited consolidated earnings results for the second quarter and six months ended March 31, 2013. For the quarter, sales were $1,503 million compared to $1,633 million for the same period a year ago. Operating profit was $78 million compared to $120 million for the same period a year ago. Operating profit excluding special items was $40 million compared to $125 million for the same period a year ago. EBITDA excluding special items was $128 million compared to $217 million for the same period a year ago. Basic earnings per share were 1 cents compared to 11 cents for the same period a year ago. Net debt at the end of the period was $2,152 million compared to $2,133 million for the same period a year ago. Return on average equity was 1.9% compared 14.7% for the same period a year ago. Net asset value per share was 227 cents compared 315 cents for the same period a year ago. Net cash utilised was $99 million, compared to net cash generation of $91 million in the equivalent quarter last year. This cash utilisation was mainly as a result of lower profits from operations and capital expenditure which increased to $179 million during the quarter from the $59 million in the equivalent quarter last year. This increased capital expenditure relates primarily to the strategic investments in expanding dissolving wood pulp capacity. For the six months, sales were $2,978 million compared to $3,218 million for the same period a year ago. Operating profit was $148 million compared to $227 million for the same period a year ago. Operating profit excluding special items was $113 million compared to $225 million for the same period a year ago. EBITDA excluding special items was $290 million compared to $411 million for the same period a year ago. Basic earnings per share were 5 cents compared to 20 cents for the same period a year ago. Return on average equity was 3.2% compared to 13.2% for the same period a year ago. Net asset value per share was 227 cents compared 315 cents for the same period a year ago. The company expects net debt to peak at approximately $2.4 billion in the third quarter and thereafter to decrease to approximately $2.2 billion by the end of the financial year 2013. For the second quarter of 2013, the company recorded impairment of assets of $47 million.

Sappi Limited, Q2 2013 Earnings Call, May 09, 2013