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ANDRITZ successfully starts up Japan’s first steel yankee for tissue machines

2012-05-16T00:00:00+01:00

International technology Group ANDRITZhas successfully started up the PrimeDry Steel Yankee (diameter: 3.7 m; shell length: 4.3 m) supplied to Doh-Ei Paper, Japan. At its Hokkaido mill, Doh-Ei produces 4,500 t of facial tissue and 14,500 t of toilet tissue per year made from 100% recycled paper. In June 2011, Doh-Ei commissioned ANDRITZ PULP & PAPER to upgrade its drying line. In addition to increasing production and improving the runnability of the tissue machine, this investment was also intended to reduce energy costs – a particularly important criterion worldwide due to the sharp rise in oil and gas prices. “Steel is a highly heat-conductive material. Following the installation of the ANDRITZ PrimeDry Steel Yankee, the energy efficiency and production output of our mill will be very high,” says Mr. Masashi Kobayashi, President of Doh-Ei. With this successful start-up of Japan’s first steel yankee, ANDRITZ has confirmed its position as one of the leading global suppliers of steel yankees for the tissue, board, and paper industries. (Andritz AG)

FORTRESS PAPER PROVIDES DRESDEN OPERATIONAL UPDATE

2012-05-16T00:00:00+01:00

Fortress Paper Ltd. ("Fortress Paper" or the "Corporation") (TSX:FTP), is pleased to announce that its wholly-owned subsidiary, Dresden Papier GmbH, a leading manufacturer of wallpaper base, has operated 24 hours per day (100% utilization) without stoppage for 20 consecutive days compared to an annual average utilization rate of 93% in 2011. As a result, waste has been reduced to approximately 5% from an annual average waste rate of 9.35% in 2011. "We are delighted with Dresden’s operating consistency and efficiency. We believe that these production milestones will provide a meaningful impact to our financial results in the second quarter", said Chadwick Wasilenkoff, Chairman, Chief Executive Officer and President of Fortress Paper. (Fortress Paper Ltd)

Neenah Paper Reports 2012 First Quarter Results

2012-05-16T00:00:00+01:00

Adjusted Earnings per Share Increase 43% with 15% Sales Growth and Improved Operating Margins Neenah Paper, Inc. (NYSE:NP) reported adjusted earnings from continuing operations of $0.77 per diluted common share in the first quarter of 2012 compared to adjusted earnings of $0.54 per share in the first quarter of 2011. Excluding adjustments, earnings in the first quarter of 2012 of $0.54 per share compared to earnings of $0.45 per share in the prior year period. Items excluded from adjusted earnings in 2012 totaled $0.23 per share for a pension settlement charge and costs to integrate brands purchased from Wausau Paper Corp. on January 31. In 2011, adjusted earnings excluded $0.09 per share for costs associated with the early redemption of a portion of the Company's long-term bonds. Adjusted earnings are reconciled to GAAP figures later in this release. Net sales of $198.2 million in the first quarter of 2012 grew 15 percent compared with the first quarter of 2011, while adjusted operating income of $22.2 million increased 29 percent. Operating income increased in both Technical Products and Fine Paper as a result of higher net pricing and cost efficiencies, with Fine Paper further benefitting from higher volumes related to the purchased brands. "Each of our businesses performed well during the first quarter, with combined operating income for the two segments achieving a new quarterly record. We are improving topline performance with volume gains and price realization in higher value products and are realizing manufacturing cost efficiencies that have come from a consistent emphasis on improved operating throughput," said John O'Donnell, Chief Executive Officer. "Both sales and integration of the recently acquired brands are ahead of expectations, and the transaction has generated the anticipated strong market support and internal efficiencies that we knew could be a game changer for some of our manufacturing facilities." (Neenah Paper Inc.)

EU Ecolabel awarded to UPM Plattling papers

2012-05-16T00:00:00+01:00

All UPM paper products produced at UPM Plattling mill in Germany have now been granted the EU Ecolabel. Reels and sheets supplied by the mill complement the comprehensive range of UPM paper products already carrying the EU Ecolabel which is geographically the most extensive eco-label available. The label guarantees that paper meets strict environmental criteria concerning air and water emissions as well as energy and chemical consumption. In addition, the origin of all wood fibre must be known. "The EU Ecolabel is a proof of our products’ excellent overall environmental performance and thus low environmental impact,” says Päivi Rissanen, UPM's Environmental Director for Paper Business Group. To date almost all UPM copy and graphic papers produced in Europe have been awarded the EU Ecolabel and the company is a clear industry leader with almost 200 paper grades from 15 paper mills approved under the EU Ecolabel scheme. All in all about 8 million tonnes of UPM paper will be able to carry the EU Ecolabel award by end of 2012. Supported by the European Commission and all EU member states the Ecolabel offers guidance to consumers and purchasers, who wish to be sure of buying products with superior environmental performance. (UPM Plattling)

CLEAR IMPROVEMENT OF RESULTS AND RETURN TO PROFITABLE OPERATIONS...

2012-05-16T00:00:00+01:00

... IN Q1 2012 Photo: CEO Miklas Dronkers CVG BENEFITING FROM LOWER PULP PRICES AND STRONG GROWTH IN NEWLY DEVELOPED PRODUCTS Today, at the Annual General Meeting of shareholders Miklas Dronkers, CEO, will present the following trading update on recent market developments, the status of the strategic review and the outlook for 2012. Operating review Market developments In the first four months of 2012, CVG has benefited from a clear recovery in the European paper market. Although the order volume in the European market for woodfree uncoated paper on reels showed a decrease of 7% compared with the same period last year, market sentiment improved substantially from the lacklustre conditions in the second half of 2011, when due to low order intake production capacity could not be fully utilised. CVG s order book has been strong during the last couple of months, resulting in the full utilisation of production capacity and a more selective acceptance of customer orders. As announced at the presentation of the annual results last February, the company will focus strongly on the commercialisation of the newly developed (NBD) products in 2012. The commercialisation programme is well on course and NBD sales are expected to increase to approximately one-third of our sales volume in 2012. Thanks to the new business development programme, CVG now has a leading role in the market for specialty paper for high-speed colour inkjet printers. This was confirmed at the Drupa, the largest international trade fair for the paper and printing industry in the world, which was held in Germany during the last two weeks. The introduction of Crown Digital Silk, a special inkjet paper for the latest generation of high speed inkjet printers was well-received during the fair. Crown Digital Silk guarantees improved colour depth and excellent printing results due to a silky paper surface. Raw material prices Pulp is the most important raw material for CVG s papers and also the largest input cost in the papermaking process. In mid 2011, pulp prices reached record levels with the NBSK benchmark to around USD 1,020 per ton. In the second half of 2011 the pulp market gradually returned to a more balanced supply and demand situation. The NBSK pulp price came down to around USD 830 per ton in February. Strategic review In 2005, CVG initiated the new business development (NBD) programme. This programme anticipated on the rapid digitisation trend in the graphical paper sector. With the NBD programme, the company has been able to better position itself for the future. In the last couple of years, CVG has developed itself to a specialty paper manufacturer with a comprehensive product portfolio. CVG will build further on its core strengths, especially our customer orientation and flexibility of operations. The company has defined three focus areas to distinguish ourselves better among our larger competitors and to promote profitable business opportunities: - Graphical: CVG s traditional market. CVG intends to strengthen its leading market position in papers for digital printing and aims at sales growth in paper supplies for high speed full colour inkjet printers. - Label: the strong back-bone of the company, with CVG as one of the market leaders in Europe. CVG aims to increase its market share and diversify further in release liners. - Packaging: CVG aims to penetrate and diversify in specific applications within the food and non-food packaging market. For a further acceleration of growth in more profitable markets, CVG has actively searched for cooperation with other players in the paper and packaging sector. With the right partner, CVG might be able to speed up the launch of and growth in new products, both in the company's current market as well as other market areas, such as (food) packaging. Since September 2011, in cooperation with a corporate finance adviser a large number of market players has been approached and with several parties meetings were held to explore opportunities for cooperation. Until now the search for alternative options for the company has not materialised in tangible outcomes. This could well be attributed to the challenging financial and business climate during this period. Good contacts with several parties have been established and might result in opportunities at a later stage. The company will give an update on the developments when serious opportunities for cooperation materialise. In the coming period, CVG will make a further outline of its mission and goals for the period up to and including 2016. Mission 2016 will be published together with the 2012 annual results in February 2013. Outlook 2012 The recovery in paper demand, a.o. newly developed products, and lower pulp prices have resulted in a clear improvement of results and a return to profitable operations in the first months of 2012. As from March, pulp prices have increased again and are expected to rise further till Q3 2012. This will put a downward pressure on selling margins, but this is expected to be compensated by sales growth in new products and higher selling prices. The development of results in 2012 is subject to a further increase in sales of our newly developed products, the general economic outlook, paper demand, pulp and selling price developments and the development of exchange rates. All these factors are yet hard to predict. Therefore, CVG is not in the position to provide a more precise outlook for the full year 2012. But based on the developments in the first months of 2012 and the current market outlook the company expects operations for the full year 2012 to be profitable. (Crown Van Gelder N.V.)

Jungheinrich: Good Start to the 2012 Financial Year

2012-05-16T00:00:00+01:00

Material Handling Equipment Market Posts Stable Development/Strong Growth in Net Sales/Earnings Trend Further Improved The Jungheinrich Group got off to a good start to fiscal 2012, closing the first quarter of 2012 with significant rises in incoming orders and sales as well as a further improvement in earnings. The business trend benefited from the continued increase in plant capacity utilization and the growth in the service business. Irrespective of the marked drop in momentum displayed by world economic growth, global demand for material handling equipment remained stable at a high level in the first quarter of 2012, at 246.1 thousand trucks (prior year: 246.3 thousand units), and was thus about 4 per cent up on the market volume observed in the fourth quarter of 2011. Markets displayed disparate regional development. Europe, Jungheinrich's core market, recorded a decline of 4 per cent. Whereas the Western European market shrank by 5 per cent, demand in Eastern Europe increased by 4 per cent. Asian market volume was only marginally larger year on year, with China experiencing a decline of 5 per cent. In contrast, the North American market expanded substantially, growing by 13 per cent. The value of the Jungheinrich Group's incoming orders, encompassing all business areas, rose by 8 per cent to 580 million euros compared to the same period last year (prior year: 538 million euros), reflecting a disproportionately significant gain in the service business. In the first quarter of 2012, production output advanced by 5 per cent to 19.9 thousand forklifts (prior year: 18.9 thousand units). This increase is predominantly due to the mounting utilization of capacity at the Moosburg manufacturing site. Net sales in the first quarter of 2012 climbed by 11 per cent to 522 million euros (prior year: 472 million euros). Whereas domestic business posted a year-on-year rise of 16 per cent to 146 million euros (prior year: 126 million euros), foreign sales displayed less substantial growth, advancing by 9 per cent to 376 million euros (prior year: 346 million euros). By March 31, 2012, the share of sales accounted for by non-German operations had fallen to 72 per cent (prior year: 73 per cent). All business areas contributed to the uptick in net sales. The largest gain was recorded by new truck business, which achieved a rate of increase of 16 per cent, driving up sales to 269 million euros (prior year: 231 million euros). Overall, the short-term hire and used equipment business posted a rise of 14 per cent to 90 million euros (prior year: 79 million euros). Both demand for trucks for short-term hire and the sale of used equipment grew significantly. Net sales generated by after-sales services climbed by 5 per cent to 165 million euros (prior year: 157 million euros)—solid growth for this business area. Recording a substantial increase in earnings in the first quarter of 2012, the Jungheinrich Group maintained its positive earnings trend. The rise in earnings was driven by the favourable product mix and and rise in production output by our factories, especially at the Moosburg site, which further increased its capacity utilization. Furthermore, the significant expansion of the short-term hire and used equipment businesses and the growth of our after-sales services operations contributed to the improvement in earnings. Operating earnings before interest and taxes (EBIT) rose to 34.5 million euros in the first quarter of 2012 (prior year: 30.3 million euros). As a result, the corresponding return on sales climbed to 6.6 per cent (prior year: 6.4 per cent). Net income advanced to 25.0 million euros (prior year: 21.7 million euros). Accordingly, earnings per preferred share improved to 0.77 euros in the first quarter of 2012 (prior year: 0.67 euros). Jungheinrich expects world trade to maintain its moderate economic momentum displaying significant regional differences over the remaining course of 2012. Taking account of the demand trend observed in the first quarter of 2012, Jungheinrich anticipates that the global material handling equipment market will only expand by 2 per cent to some 1 million units. Market growth will probably be witnessed above all in Asia, Latin America and the USA. Says Hans-Georg Frey, Chairman of the Board of Management of Jungheinrich AG: "Based on the prognosticated market growth and under the condition that the business trend witnessed in the first quarter of 2012 continues, we expect our company's incoming orders to total at least around 2.1 billion euros and consolidated sales to be commensurate, matching last year's level. The sales trend will benefit from the high level of orders on hand as of March 31, 2012 as well as from potential growth opportunities. The Jungheinrich Group stands a good chance of keeping its operating earnings before interest and taxes (EBIT) at last year's level as long as the material handling equipment industry's worldwide markets develop as forecast." (Jungheinrich Aktiengesellschaft)

Rigid appoints new Financial Director - Lars Maynard gets the top job

2012-05-15T00:00:00+01:00

Following the untimely death of previous Financial Director Paul Coates in January this year, Rigid Containers Ltd has now filled the position permanently, with the appointment of Lars Maynard BSc FCA. “When Paul died suddenly in the early New Year, we were obviously all left devastated,” explains Richard Coward, Managing Director. “While it was understandably tough on many people, business had to continue, so we quickly recruited the services of an interim, to ensure the smooth running of the financial side of our business. We used this time to recruit a full-time replacement to Paul. I am delighted to welcome Lars to the team and look forward to working with him for the years ahead.” Lars Maynard has held senior financial and Board level positions across a range of industries since achieving FCA certification in 1995. Most recently, he was Financial Director of a £60 million packaging manufacturer group. “It is obviously very hard to replace someone who was so well liked and respected,” comments Mr Maynard, “but I look forward to the challenges of assisting the management team in taking Rigid forward as our business continues to grow, both in volume and profitability.” (Rigid Containers Limited)

Sappi: Results for the second quarter ended March 2012

2012-05-15T00:00:00+01:00

-Profit for the period US$58 million (Q2 2011 loss US$74 million) -EPS 11 US cents (Q2 2011 loss per share 14 US cents) -Net cash generated US$91 million (Q2 2011 US$100 million) -Net debt US$2,133 million, down US$42 million from Q1 2012 -Cost savings led to improved performance in European business -Southern African chemical cellulose business continues strong performance The quarter under review Commenting on the results, Sappi Chief Executive Officer Ralph Boëttger (photo) said: “The improving trend in operating performance continued in the quarter, with the European and North American businesses in particular showing good improvement. The group achieved a net profit for the period of US$58 million (Q2 2011 US$74 million loss) and EPS of 11 US cents (Q2 2011 loss of 14 US cents) in the second quarter of the 2012 financial year. “The performance of the European business was particularly pleasing, following the relentless focus on cost reduction in that region. Market conditions for coated paper have been weaker than in the equivalent period last year, but despite this, our operating rates remained good in both Europe and North America as a result of management action. Variable costs and fixed costs are generally lower, particularly in Europe, enabling margins to be maintained or widened. “The Southern African chemical cellulose business continues to perform strongly, driven by strong sales volumes. Despite pricing being lower than in the prior quarter and in the equivalent quarter last year, the business generated an EBITDA margin of approximately 30%.” “Pulp prices, which had been weakening since July 2011, stopped declining midway through the quarter, and have since been gradually increasing. This increase in pulp prices benefits our Southern African and North American businesses as they are net sellers of pulp, but it has a negative effect on the input costs of our European business. Cash generated from operations was US$214 million for the quarter, and net cash generated was US$91 million. Net debt reduced to US$2,133 billion. Net finance costs of US$51 million were significantly lower than the US$68 million of the equivalent quarter last year.” Outlook We expect demand for our coated paper to remain challenging compared to last year, but for most major input costs to remain below the levels seen a year ago. The European and South African businesses will benefit from the restructuring actions taken in these regions. “The Southern African chemical cellulose business is expected to continue to perform well. The conversion projects at two mills are on track for start-up in our third financial quarter of 2013. We have received good support from a range of customers for the future increase in production volumes. “Our third financial quarter is historically and seasonally the weakest quarter, and will be further impacted, as it was last year, by planned annual maintenance shuts at a number of our major pulp mills. These shuts will result in an increase in maintenance costs and lost contribution from reduced output and sales. We expect our operating profit excluding special items for the third financial quarter to be in line with the equivalent quarter last year. “For the full year we expect operating profit excluding special items to be in line with the previous financial year, and for the group to generate positive earnings per share. “We expect positive cash generation for the balance of the year, leading to a further reduction in net debt. We will consider refinancing our higher cost debt, including the bonds due in 2014, when market conditions are favourable and it makes economic sense to do so. Looking forward, Boëttger commented: “We are confident that the actions we have taken and that we continue to take will lead to a sustainable and continuous improvement in performance going forward.” (Sappi Limited)

Nordic Paper Bäckhammar PM 5 ordered runnability technology from EV Group

2012-05-15T00:00:00+01:00

Picture: EVsf web stabilizer EV Group delivered web stabilizing technology for Nordic Paper Bäckhammar PM 5. The optimization included EVsf Web Stabilizer for single felted section, above cylinder #3 to improve runnability. PM 5 produces unbleached sack paper. Mr. John Werner, Technical Manager, is happy with the results: “It was pleasure to work with EV Group. We are satisfied with the installation and we have received good results after the optimization.” (EV Group Oy)

Food packaging specialist boosts productivity - New KBA Rapida 145 for WS Quack + Fischer

2012-05-15T00:00:00+01:00

Photo: KBA KBA Rapida 145 is destined for WS Quack + Fischer: this photo shows (l-r) Thomas Gross of KBA-Deutschland, Heinrich Steuber managing director Stephan Steuber, KBA-Deutschland managing director Ramona Weiss-Weber, WS Quack + Fischer managing partners Hermann-Josef Schmitz and Heinz Eicker, and packaging plant manager Thomas Eicker at the exhibition press On 8 May German packaging printer WS Quack + Fischer (WSQF) in Viersen placed an order at Drupa for a KBA Rapida 145 six-colour coater press with VariDryBLUE dryers in a triple extended delivery. The 17,000sph high-tech press with automatic plate changing will be mounted on a 630mm (24.8in) and integrated in an automated pile-logistics system. Installation is slated for October this year. The Rapida 145 will be the first press sold by KBA Deutschland in alliance with Heinrich Steuber. Since WSQF knows and has long appreciated the excellent service provided by Steuber, the logical move was to switch press vendors following Steuber’s agreement with KBA. The big new Rapida 145’s superior technology also played its part, because the fast job changes it makes possible, its high output and known reliability will deliver an enormous gain in productivity. WSQF is known for functional and attractive folding cartons. The company was founded in 1897 at its present site in Viersen as a subsidiary of the Kaiser-Tengelmann group, and merged in 1999 with packaging manufacturer WS in Wassenberg. It offers a complete range of services that includes product development, warehousing and delivery. Today it prints as many as 300,000 sheets per day. With the Rapida 145 this figure will soar. WSQF is a vendor of primary food packaging with BRC certification, and has also achieved DIN 9001, FSC and PEFC accreditation. Non-hazardous GA, MAG and MU inks are used in print production. The heating plant with heat recovery system installed in 2003 supplies 70 per cent of the company’s heating requirements solely from wood and paper waste. (Koenig & Bauer AG (KBA))