2016 HIGHLIGHTS: * Strong operating cash flow1 of R$ 2.7 billion and ROIC of 12%. * Strong operating results: record high pulp production and sales. * Target cash cost for 2018 (R$ 570/ton2) met in 4Q16: lower wood costs and benefits from investments in retrofitting mills. * Cost discipline: COGS/ton performance (+1.7%) lags inflation in the period (+6.3%). * Expense discipline: reduction of 7.6% in SG&A/ton compared to 2015. * Higher profitability of paper business in a scenario of contracting Brazilian demand through the consolidation of the Go to Market program (“Suzano Mais”), which aims to strengthen relations with end consumers. * Financial discipline: lower net debt, net debt/adjusted EBITDA ratio of 2.6 times, lower debt cost and upgrade in credit rating. * Liability management: issues in the domestic and international capital markets. * Capital discipline: investments below initial budget and dividend distribution based on operating cash flow. * Advances in the industrial project to debottleneck Imperatriz Unit, to be concluded in 2017, and acquisition of forestry assets to supply the expansion in pulp production and to reduce cost in Maranhão. * Fluff: higher production during the year and launch of exports. * Lignin and Tissue: startup of production slated for this year. click Read More below for additional detail
Irving Paper received notification from the U.S. Department of Commerce (DOC) of a preliminary determination of 7.99% duty on exports of SC paper to the United States. At this time we are awaiting receipt of the DOC’s report which details the reasons for this duty calculation. We are disappointed in the decision made by DOC. Although this is a significant improvement from the current rate of more than 18.85% we had expected our rate to be significantly lower than 7.99%. We will need to review Commerce’s written decision to understand the basis of the decision.
This preliminary determination does not immediately change the current rate of 18.85% which Irving Paper is paying on shipments into the U.S.
Between February and April of 2017 the U.S. Department of Commerce will issue the final rate.