Sappi Fine Paper Co. has agreed in principle to withdraw its tax abatement requests against the town for 2014 and 2015 in exchange for an agreed upon $64 million in reduced value for taxation beginning this coming year. The tentative agreement is a move to save jobs at the paper mill on U.S. Route 201 and is a compromise between mill owners and the town, officials said Tuesday night. Under the agreement, the town would lose about $1.2 million in taxes for fiscal year 2016-17, the town’s assessor’s agent Bill Van Tuinen said Tuesday night after an executive session of the Board of Assessors and the Board of Selectmen. “All the details are not done,” Van Tuinen said, “but the concept is totally agreed to.”
Growth while pulp price put pressure on paper margins
• Q2 sales revenue amounted to PLN 792,4mn (EUR1 187,8mn).
• EBITDA Q2 amounted to PLN 66,8mn (EUR1 15,8mn).
• EBIT Q2 was PLN 45,5mn (EUR1 10,8mn).
• Price increases have not offset the rising pulp prices during the period.
• Speciality products share of sales have slightly increased, which is in line with the strategy.
• The Annual general meeting decided to pay a dividend of PLN 0.2 per share.
“The price increases we have implemented have not yet fully compensated for the rising pulp cost and we are working hard to defend our margins.” Per Skoglund, CEO “During the period we have advanced the implementation of the new strategy – A Future in Paper. Our efforts are already showing progress: one example is the continued growth of speciality products with a higher revenue per tonne. ”
For the second quarter, which typically is the weakest quarter, Artic Paper Group increased its turnover to PLN 792,4 million (compared to PLN 703,1 million in Q2, 2017) and reached an EBITDA of PLN 66,8 million (64,6 million). For the paper segment, turnover rose to PLN 558,8 million (513,2 million) while EBITDA fell to PLN 19,7 million (26,8 million).
During the period the pulp price reached a record high. According to forecasts, the pulp price will continue to rise in the foreseeable future, thus putting continued pressure on our margins. However, in Q3 we have seen a tendency towards a stabilization in the price for short fibre pulp (BHKP), which accounts for more than two thirds of our pulp consumption. The price increases we have implemented have not yet fully compensated for the rising costs and we are working hard to defend our margins.
The challenging market conditions stresses the value of combining our paper operations with our 51 percent ownership in the pulp producer Rottneros AB, which reached a turnover of SEK 596 million (472 million) and an EBITDA of SEK 118 million (83 million). The full report is available at http://www.rottneros.com/investors/financial-reports/
For the second quarter, production amounted to 160,000 tonnes, equal to last year. During the period we have advanced the implementation of the new strategy – A Future in Paper. Our efforts are already showing progress: one example is the continued growth of speciali ty products with a higher revenue per tonne. We are currently developing new high end products and grades to further increase sales. We are also committed to achieve greater efficiency in our operations in order to strengthen our margins.
more detail at: http://www.arcticpaper.com/Global/News%20Global/ENG/Arctic%20Paper_PR_Q2H1_2018_EN_final.pdf