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Printing and packaging market rebound revenues to enhance the Paper

2013-03-29 13:58:39 Click:
Reuters reported on 27 October, after the rise in paper prices, International Paper and Stora Enso, Fenlin paper reported third-quarter revenue situation. As the printing and packaging paper market demand growth and rising paper prices rebound, International Paper and Stora Enso have raised revenue, Fen Lin paper also realized a profit, but the industry outlook remains uncertain.

With the daily consumer goods spending increased in recent months, demand for printing and packaging paper strong growth. International Paper announced in the third quarter, its profit rose 7%. And compared to last year, the company's performance this year, slightly weaker, but its growth momentum is likely to continue into 2011.

International Paper Company's Chief Financial Officer Tim Nicholls said: "Whether it is for the third quarter or fourth quarter, we feel very good, I believe there will be a good harvest this year." It is reported that the company relatively slow recovery of the North American market, but the rapid recovery of the market outside North America and a rapid growth.

Stora Enso announced revenue of 255 million euros, an increase of 94%. However, Stora Enso said that with the repair work of some of its plants, while a seasonal decline in demand for some products, the fourth-quarter revenue will fall to a quarter of the third quarter. However, Stora Enso will benefit from rising paper prices, while some analysts pointed out that companies often make their cautious outlook comments.

Another smaller rival Fenlin Finnish paper company also realized in this quarter profit, but earnings data than previously expected.

During the quarter, International Paper raised boxes, cardboard boxes and the price of consumer goods packaging products. "Price increases significantly faster than the paper and packaging material costs growth rate," said analyst Tom Some analysts believe that prices of certain packaging products will be industry-wide decline, which is likely to impact on International Paper Company's revenue in the fourth quarter. Stora Enso also warned that rising costs of paper recycling will have a negative impact, although the market was upbeat on the prospects.

In addition, Stora Enso newsprint business in the third quarter operating margin is zero, and last year was 10.5%, compared with the previous quarter, but the loss has been substantially narrowed. Meanwhile, the European newsprint market prices compared with 2009 levels also fell by 20%. CEO  said its newsprint business is very unsatisfactory, and in the demand for paper in Europe in late September or even lower than pre-crisis level of 2007.

In short, the paper industry is struggling to recover from nearly a decade by weak demand and excess capacity caused by the market downturn, but the global economic downturn hit advertising spending, which makes the problems facing the paper industry has become more bad.
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