“Our second quarter results reflect solid overall performance including a record quarter for Advanced Airlaid Materials and meaningful progress towards our previously announced cost reduction targets,” said Dante C. Parrini, Chairman and Chief Executive Officer. “Our Airlaid Materials business continued its strong growth trajectory, increasing both volumes and operating profit approximately 40% over the prior-year period, building on the momentum from earlier this year. Shipment growth in the legacy business was led by wipes, table top and adult incontinence products. In Composite Fibers, we delivered sequential quarter improvement in volumes and profitability, although this business was impacted by competitive market pressure and weak demand for wallcover and metallized products.”
Suzano S.A. (B3:SUZB3 | NYSE: SUZ), one of the world’s largest pulp and integrated paper producers, today announces its consolidated results for the second quarter of 2019 (2Q19). Comparison data with 2018 (2Q18, 6M18 and LTM4) represent the simple sum or weighted average of Suzano + Fibria.
* Pulp sales of 2,214 thousand tons, up 28% from 1Q19.
* Paper sales of 301 thousand tons, up 10% from 1Q19.
* Adjusted EBITDA¹ and Operating Cash Generation²: R$3.1 billion and R$2.2 billion, respectively.
* Adjusted EBITDA¹/ton of pulp of R$1,305/ton (-12% vs. 1Q19).
* Adjusted EBITDA/ton of paper of R$1,219/ton (+15% vs. 1Q19).
* Average net price of paper of R$4,030/ton (+1% vs. 1Q19).
* Pulp cash cost of R$ 733/ton, or R$ 697/ton ex-downtimes.
* Reduction in estimated Capex for 2019 from R$ 6.4 billion to R$ 5.9 billion.
The first half of the year was marked by a strong imbalance between supply and demand in the global pulp market. On the supply side, the lack of unexpected events, which on the other hand were frequent in 2017 and 2018, coupled with the fact that the pulp industry operated almost at full capacity, substantially increased the availability of pulp (both softwood and hardwood) in the market. On the demand side, the macroeconomic weakening of major countries in the world scenario, geopolitical uncertainties especially the China-US trade war, and destocking by pulp clients restricted growth in market sales volume.
This combination of factors led to a significant deterioration in the prices of both hardwood and softwood fibers in the first half of the year. In the second quarter, que reduction in pulp prices, along with the higher production volume of graphic papers in China and the continuous growth of Tissue in all markets favored the recovery in pulp demand, which grew 6.9% in the first two months during the quarter compared to the first two months in 1Q19. In this context, Suzano sold 2,214 thousand tons of market pulp in 2Q19, 28% more than in 1Q19 and 14% less than in 2Q18.
more detail at: http://ri.suzano.com.br/fck_temp/mala_direta/file/Release%20de%20Resultados_2Q19_EN-US_vFinal_vers%C3%A3o_CVM.pdf