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Newsgrafik #117793
 22.08.2017

Cenveo Reports Second Quarter 2017 Results  (Company news)

-Significant Progress on Implementation of $50 Million 2017 Profitability Improvement Plan
-7% Convertible Notes Fully Redeemed and Retired
-Cenveo to Join NASDAQ, Effective August 8, 2017
-2017 Guidance Update

Cenveo, Inc. (NYSE: CVO) reported financial results for the three and six months ended July 1, 2017.

Second Quarter 2017 vs. Second Quarter 2016 Overview
-Net sales of $355.0 million compared to $410.1 million.
-Net loss of $1.9 million compared to net income of $47.6 million.
-Adjusted EBITDA(1) of $30.2 million compared to $37.5 million.
-----Q2 2016 included one-time benefits of $6.0 million in connection with the exit of our coating operation
-Net cash provided by operating activities of continuing operations of $0.7 million compared to $7.7 million.
-Gross margin of 16.1% compared to 16.7%.
-Interest expense of $19.5 million compared to $21.5 million.

Management Commentary
"Given the challenging operating environment we experienced during the first half of the year, we are generally pleased with our Adjusted EBITDA performance for the quarter compared to the prior year, which included one-time benefits in connection with the closure of our coating operation. Our consolidated results for the second quarter of 2017 were adversely impacted by weakness in our direct mail business primarily driven by softness from our financial institution customers due to lower customer acquisition related mailings. These results were partially offset by the positive effects of our 2017 Profitability Improvement Plan. To date, we are very pleased with the implementation progress and we are now on pace to exceed our original $50 million target that we announced earlier this year. During the second quarter 2017, we retired the remaining portion of our 7% Convertible Notes to complete our 2017 refinancing initiative. Also, as we previously announced, Cenveo will be transferring its stock exchange listing to the Nasdaq Global Market ("NASDAQ") from The New York Stock Exchange ("NYSE"). Cenveo shares will begin trading as a Nasdaq-listed security on August 8, 2017, and will continue to trade under the symbol CVO," said Robert G. Burton, Sr. (photo), Chairman and CEO of Cenveo.

Financial Results
Net sales in the second quarter of 2017 were $355.0 million compared to $410.1 million in the same period last year, a decline of 13.4%. The Company generated net sales of $736.9 million for the six months ended July 1, 2017, compared to $850.6 million for the same period last year, a decline of 13.4%. The sales decline was primarily driven by: (i) lower sales in the envelope segment, primarily due to lower demand in office product and wholesale envelope product lines primarily due to marketplace trends and lower direct mail demand primarily from our financial institution customers; (ii) lower sales volumes in the commercial print group and the publisher services group, primarily driven by lower customer demand and continued pricing pressures; and (iii) lower sales in the label segment, primarily due to the decision to exit our coating operation which was completed in the second quarter of 2016, and lower sales driven by product mix changes.

Operating income was $11.4 million for the three months ended July 1, 2017, compared to operating income of $21.6 million in the same period last year, a decline of 47.3%. Operating income was $21.4 million for the six months ended July 1, 2017, compared to operating income of $38.6 million for the same period last year, a decline of 44.6%. The declines in both the three and six months ended were primarily due to lower gross profit resulting from lower sales volumes, the impact of the decision to exit the coating operation, and higher restructuring and other charges resulting from the 2017 Profitability Improvement Plan, including the announced closure of two facilities. These declines are partially offset by the benefit of lower selling, general and administrative expenses due to our cost reduction initiatives in connection with the 2017 Profitability Plan and lower commission expense due to lower sales volumes. Non-GAAP operating income was $18.1 million for the three months ended July 1, 2017, compared to non-GAAP operating income of $24.0 million for the same period last year. Non-GAAP operating income was $37.3 million for the six months ended July 1, 2017, compared to $47.5 million for the same period last year. A reconciliation of all non-GAAP figures are reported in the tables below.

For the three months ended July 1, 2017, the Company had a loss from continuing operations of $1.9 million, or $0.22 per diluted share, compared to income of $50.9 million, or $5.15 per diluted share, for the same period last year. For the six months ended July 1, 2017, the Company had a loss from continuing operations of $10.5 million, or $1.23 per diluted share, compared to income of $63.9 million, or $6.43 per diluted share, for the same period last year. Income during 2016 was primarily driven by gains on the early extinguishment of debt of $51.3 million and $72.9 million during the three and six months ended July 2, 2016, respectively. Non-GAAP loss from continuing operations was $1.7 million, or $0.19 per diluted share, for the three months ended July 1, 2017, compared to income of $2.5 million, or $0.25 per diluted share, for the same period last year. Non-GAAP loss from continuing operations was $1.8 million, or $0.20 per diluted share, for the six months ended July 1, 2017, compared to income of $1.5 million, or $0.15 per diluted share, in the same period last year. A reconciliation of (loss) income from continuing operations to non-GAAP (loss) income from continuing operations is presented in the attached tables.

Net loss was $1.9 million for the three months ended July 1, 2017, compared to net income of $47.6 million for the same period last year. For the six months ended July 1, 2017, net loss was $10.5 million, compared to net income of $58.8 million for the same period last year. Adjusted EBITDA was $30.2 million for the three months ended July 1, 2017, compared to $37.5 million for the same period last year. Adjusted EBITDA was $61.4 million for the six months ended July 1, 2017, compared to $72.4 million for the same period last year. The significant drivers in the change in our Adjusted EBITDA were: (i) the expected impact associated with the disruption in our office and wholesale products and the exit of our coating operation accounting for a reduction of approximately $9.0 million and $15.0 million for the three and six months ended July 1, 2017, respectively, and (ii) lower direct mail demand primarily from our financial institution customers. The declines were partially offset by our profit improvement initiatives, which accounted for an increase of approximately $6.1 million and $11.1 million for the three and six months ended July 1, 2017, respectively, primarily driven by our operational efficiency projects and position reductions across our operating platform.

Cash flow provided by operating activities of continuing operations for the second quarter 2017 was $7.1 million, compared to $19.2 million for the same period last year. Cash flow provided by operating activities of continuing operations for the six months ended July 1, 2017, was $0.7 million, compared to $7.7 million for the same period last year. The declines in both periods were primarily due to changes in working capital, particularly the timing of payments to vendors and higher inventories due to inventory needs during plant consolidations, partially offset by sales to and collections from our customers.

At July 1, 2017, cash and cash equivalents totaled $7.1 million, compared to $5.5 million at December 31, 2016. Total outstanding long-term debt, including current maturities, was approximately $1.0 billion as of July 1, 2017, an increase of $20.6 million from December 31, 2016, primarily due to net borrowings on our asset-based revolving credit facility, as well as the initiation of certain equipment financings. During the second quarter of 2017, the remaining $5.5 million principal balance of 7% Convertible Notes was redeemed in full.

2017 Outlook
Our first half results were impacted by several known challenges including trends in the office product and wholesale envelope market and our decision to exit our coating operations. Those anticipated items now combined with lower direct mail envelope volumes during the first half of the year have affected our ability to achieve our net sales guidance for 2017 while making the achievement of our Adjusted EBITDA guidance more challenging. However, we are encouraged by recent customer activity within our direct mail product line. We also now believe we will realize more than our original $25 million of profitability improvements during this year. The potential for the realization of incremental cost savings along with an improvement in our direct mail volumes, which must return to prior year levels during the back-half of the year, would allow us to achieve our Adjusted EBITDA guidance for 2017.
(Cenveo / Cadmus Specialty Packaging)

Newsgrafik #117794
 22.08.2017

Cascades announces the closure of its New York City plant  (Company news)

Cascades Inc. (TSX: CAS), a leader in the recovery and manufacturing of green packaging and tissue products, announces that it will close its packaging plant in Maspeth, New York, as part of the Corporation's modernization and optimization efforts in the Northeastern United States.

"To support our future development and better serve our customers, we are announcing today that the Maspeth plant's output will gradually be redeployed to our other facilities. This decision was necessary as the current site has reached its physical limits. This transition will be seamless for all of our customers. The property has already been put up for sale for US$72 million," said Charles Malo, President and Chief Operating Officer of Cascades Containerboard Packaging.

The plant, which currently employs 148 people, will close no later than December 31, 2018. In order to help staff impacted by this closure, Cascades will assess the possibility of relocating interested employees to its other facilities. Tools and measures will also be put in place by the Corporation to assist employees in their employment search, so as to reduce the impact on them and the community. Cascades wishes to sincerely thank the plant's employees for their years of loyalty. It is counting on their devotion and professionalism to serve its customers until the closure.
(Cascades Inc.)

Newsgrafik #117795
 22.08.2017

Metsä Group's comparable operating result in January–June 2017 was EUR 247 million  (Company news)

Metsä Group Half Year Financial Report 2017 3 August 2017

Photo: President and CEO Kari Jordan

January–June 2017 (1–6/2016)
-Sales were EUR 2,451 million (2,339).
-Operating result was EUR 253 million (225). Comparable operating result was EUR 247 million (229).
-Result before tax was EUR 237 million (186). Comparable result before tax was EUR 230 million (190).
-Comparable return on capital employed was 11.5 per cent (11.0). Comparable return on capital employed excluding assets under construction related to strategic investment projects was 14.0 per cent (12.2).
-Cash flow from operations was EUR 190 million (121).

April–June 2017 (4–6/2016)
-Sales were EUR 1,235 million (1,184).
-Operating result was EUR 122 million (119). Comparable operating result was EUR 119 million (120).
-Result before tax was EUR 107 million (98). Comparable result before tax was EUR 104 million (100).
-Comparable return on capital employed was 10.6 per cent (11.5). Comparable return on capital employed excluding assets under construction related to strategic investment projects was 13.1 per cent (12.6).
-Cash flow from operations was EUR 192 million (152).

Events during the second quarter of 2017
-The market prices of long-fibre and short-fibre pulp increased.
-Paperboard deliveries grew by 11 per cent from the previous quarter. The average price of folding boxboard was burdened by Husum mill’s geographical sales mix.
-Metsä Board’s extrusion coating line at the Husum mill in Sweden started up in April.
-Metsä Fibre announced that the start-up of its new bioproduct mill in Äänekoski, Finland, will begin in mid-August. Pulp deliveries will start at the beginning of September.
-Metsä Tissue announced the rebuild of the baking paper machine at the Düren mill in Germany. The value of the investment is approximately EUR 15 million.
-Metsä Wood announced its intention to build a birch plywood mill in Pärnu, Estonia. The construction work began in April, and the mill will start production in the second half of 2018.
-Metsä Forest acquired the wood supply business of Metsäkolmio Oy and Harvestia Oy’s wood supply business in southeast Finland.
-Metsä Forest divested its share in its Russian associated company ZAO HK Vologodskie Lesopromyshlennik.
-Metsä Fibre’s CEO Ilkka Hämälä, M.Sc. (Eng.), was appointed CEO of Metsäliitto Cooperative as of 1 January 2018. He starts as the President and CEO of Metsä Group on 1 April 2018.
-Ismo Nousiainen, M.Sc. (Eng.), was appointed Deputy CEO of Metsä Fibre as of 1 August 2017 and CEO as of 1 January 2018.

Result guidance for July–September 2017
Metsä Group’s comparable operating result in the third quarter of 2017 is expected to be roughly at the same level as in the second quarter of 2017.

President and CEO Kari Jordan:
“Metsä Group’s profitability in 2017 has improved from the previous year. The most significant reasons for the improved result are the clearly higher volumes in paperboard deliveries and the increased price of pulp.

Metsä Group’s key development projects aiming for profitable growth are progressing according to plan. The construction of the bioproduct mill in Äänekoski, which has proceeded on schedule and on budget, is nearly completed, and the mill’s start-up will begin in mid-August. Pulp deliveries to customers will start at the beginning of September. The new production line at the Kerto® LVL mill in Lohja will likewise start up in August. The construction of the birch plywood mill in Pärnu, Estonia, and the work of converting the old paper machine hall at Äänekoski into a birch veneer mill are proceeding well. The Husum paperboard mill’s new extrusion coating line started up in April, and the related quality feedback from customers has been good. In June, we began work on rebuilding the baking paper machine at the Düren mill in Germany. The new machine will also allow us to expand our cooking paper business in the future.

After years of stagnation, Finland’s economy has started to pick up. For this growth to continue, our country needs investments. Metsä Group and Finland’s forest industry in general have met this need. According to the National Forest Inventory figures published by the Natural Resources Institute Finland (Luke) in June, the growth of our forests has continued to accelerate. This means that the raw material base is good. Uncertainty with regard to future investments is nevertheless increasing due to the EU’s climate and land use policies. If implemented in its current form, the LULUCF Regulation, which regulates the levels of carbon sinks, would be detrimental to Finland. Combating climate change is of utmost importance, and Metsä Group is committed to it. However, restricting a sector based on sustainable forest management and a renewable natural resource is not the right way to go forward.”

Near-term outlook
Wood demand will focus on felling sites to be harvested when the ground is unfrozen and, in terms of energy wood, on crown wood.

Demand for wood products will remain good, and this will be reflected in the order book level, which will be higher than in the previous year, particularly in Kerto® LVL products. The outlook for plywood products is likewise positive. Construction in the UK is expected to remain at a good level, but delivery volumes in the third quarter are expected to suffer slight seasonal decline.

Demand for and supply of market pulp in Europe and Asia are in balance, with normal seasonal variation.

Demand for spruce sawn timber is expected to remain good in most markets. Demand for pine sawn timber has improved, and the market balance strengthened.

The growth in the demand for high-quality consumer packaging paperboard made from fresh fibre is expected to continue in market areas important for Metsä Board. Delivery volumes in July–September are expected to remain roughly at the level of the second quarter.

In the tissue and cooking paper markets, demand is expected to remain stable in all market areas. Demand for tissue paper will particularly increase in Eastern Central Europe and demand for cooking papers in Asia.
(Metsä Group)

Newsgrafik #117796
 22.08.2017

Sappi pays down debt further and delivers solid profit during third quarter  (Company news)

Financial summary for the quarter to end June 2017
-Profit for the period US$58 million (Q3 FY16: US$32 million)
-Net debt US$1,318 million, down US$265 million year-on-year
-EPS excluding special items 11 US cents (Q3 FY16: 11 US cents)

Sappi Chief Executive Officer Steve Binnie (photo), commenting on the group’s performance, said:
“I am pleased to report that during the past quarter Sappi delivered profits up 81% from a year ago, reduced debt by a further 17% (US$265 million) year-on-year. We also repaid US$400 million in bonds from cash reserves which will generate savings of approximately US$21 million per annum on our net interest charge.

“Sappi’s third quarter is seasonally and historically its weakest quarter due to the slow-down in business activity during the Northern Hemisphere summer holiday period and Sappi’s choice to use this quarter to undertake major annual maintenance shuts. The past quarter’s earnings (EBITDA ex special items) at US$155 million where almost flat on a year ago. Higher volumes were offset by higher raw material prices and a stronger Rand/Dollar exchange rate.

Based on current market conditions, including higher paper pulp prices and the current Rand/Dollar exchange rate, we expect the group’s fourth quarter operating performance to be slightly below that of last year. The full year result is likely to be above that of the prior year.”

The period under review:
The specialised cellulose business delivered higher sales volumes and higher average Dollar selling prices compared to the previous year driven by healthy demand and higher viscose staple fibre prices in the Chinese market.

In Europe, the speciality packaging business continued to achieve strong sales growth and profit margins while the graphics paper business partially achieved price increases announced in April. However, higher raw material prices contributed to a reduction in profitability compared to the prior year.

In the US, the benefits of higher dissolving wood pulp (DWP) volumes and pricing compared to last year in addition to increased packaging and coated paper sales volumes were offset by the ongoing weakness of coated paper prices. The success of cost containment programmes and efficiency gains led to a constant year-on-year result.

The packaging paper business in South Africa had another positive quarter with higher sales volumes. Costs in the quarter were impacted by the planned annual maintenance shut at Ngodwana Mill and replacement of economiser tubes at Saiccor Mill.

Our projects to increase capacity of speciality packaging in Europe and North America are progressing as planned. During the quarter capital expenditure of US$78 million was related mainly to these projects along with the next phase of the DWP debottlenecking projects at Ngodwana and Saiccor Mills. These projects will contribute increased volumes in our high growth business segments.

Outlook
DWP prices declined throughout the third quarter and reached a recent low at the end of June. Prices have subsequently moved upwards in July following a similar trend in viscose staple fibre. The bulk of our DWP sales prices are based on the prior quarter average price and we can therefore expect lower pricing for the fourth quarter than that achieved in the past quarter. Longer term market dynamics appear favourable, with demand growth expected to exceed supply growth in the next two years.

In Europe, local demand for graphic paper has stabilised somewhat and export markets have experienced strong growth. In contrast, markets remain difficult in the United States. Coated paper price increases have been announced in most major markets, which should help offset rising raw material costs.

Demand for speciality packaging continues to grow, and the conversion of the paper machines at Maastricht and Somerset Mills are set to be completed in the second and third fiscal quarters of 2018 respectively. This will further boost production capacity in these grades.

Capital expenditure in the last quarter is expected to be approximately US$170 million. This includes the next phase of the DWP debottlenecking project at Ngodwana Mill, the Somerset Mill wood-yard and the initial phases of the speciality packaging conversions at Maastricht and Somerset Mills.

We expect to reduce net debt further in the coming quarter through positive cash generation. However, a significant proportion of our debt is denominated in Euros and a stronger Euro/US Dollar exchange rate negatively impacts the translation of this debt.
(Sappi Limited)

Newsgrafik #117799
 22.08.2017

Voith Paper offers rebuilds of medium-sized paper machines to increase production capacity ...  (Company news)

... by up to 15%

On June 10, 2017, Voith Paper, Huazhang Technology, Jianhui Paper and Jinzhou Paper reached an agreement to rebuild the headboxes and shoe presses of existing paper machines. Under this new contract, Voith Paper has been commissioned to rebuild the headboxes and shoe presses of Jianhui PM 3 and PM 4 as well as Jinzhou PM 3 and PM 4.

Photo: Attendees of the signing ceremony included President of Jianhui Paper, Mr. Li Guihua; Deputy General Manager of Jianhui Paper, Mr. Chen Bo; President of Jinzhou Paper, Mr. Li Huihua; President of Huazhang Technology, Mr. Zhu Genrong; President P&S of Voith Paper Asia, Dr. Gregor Wiche; Managing Director P&S of Voith Paper China, Mr. Frank Wu; and P&S Rebuilding Business Director of Voith Paper China, Mr. Jason Jiang.

The rebuilds will lead to an increase in production capacity of 10 to 15% and a considerable improvement of the paper quality, such as an improved grammage profile and boost in paper formation. As a technology leader, Voith Paper continuously offers top performance in every sector over the entire life cycle of the paper machine while providing resource-saving solutions to ensure the sustainable success of our customers. Along with eight headboxes and two Tandem NipcoFlex, the scope of supply includes two CB turn, rolls, sleeves, press felts and services.

This is not the first cooperation between Voith Paper, Jianhui Paper and Jinzhou Paper. This rebuild contract not only shows how much the clients recognize Voith’s high-quality products, technology and service, but also lays a solid foundation for long-term strategic cooperation between the parties. This new cooperation further demonstrates the position of strength Voith Paper has in the market for rebuilding medium-sized paper machines in China.
(Voith Paper GmbH & Co KG)

Newsgrafik #117803
 22.08.2017

Heidelberg starts the new financial year 2017/18 with an increase in sales and earnings  (Company news)

• Sales slightly higher than previous year at €495 million
• Operating result (EBITDA) up from €1 million to €14 million
• Net result after taxes improved by more than €20 million to €–16 million
• Several measures initiated to achieve medium-term targets
• Outlook: Sights still set on the year-end targets for 2017/18

Heidelberger Druckmaschinen AG (Heidelberg) has started the new 2017/18 financial year (April 1 to June 30, 2017) with an increase in sales and earnings. That means it is on course to achieve its annual targets. After initiating a raft of measures, Heidelberg has already sharpened its strategic focus in the first quarter on the key areas of technology leadership, digital transformation, and operational excellence. The company is underscoring its ambitions to consolidate a new corporate culture and return to growth with the motto “Heidelberg goes digital”.

“We are making good progress in transforming Heidelberg into a digital company,” said Rainer Hundsdörfer (photo), CEO of Heidelberg. “We have already had our initial successes in the first quarter, thanks to our new digital presses and two constructive acquisitions. We want to become even faster and more efficient in the future and are continuing to reconfigure company structures to that end.”

Positive results from the implementation already in the first quarter
During the first quarter of the current financial year, Heidelberg showcased itself as an industry pioneer for digitization at the key China Print trade fair. Customers showed a great deal of interest in this forward-looking topic, which translated into positive developments in incoming orders in this important market. Heidelberg has encountered strong customer demand for the “Primefire”, the first industrial digital packaging printing press, and order books are full for the next two years. By taking over software supplier DOCUFY, the company is reinforcing the new digital platforms business area and expanding its Industry 4.0 portfolio. In the growth segment of consumables, business with coatings and pressroom chemicals has been further expanded in the EMEA region following the acquisition of this area from Fujifilm. Additional measures relating to operational excellence include efficiency improvements on all levels, such as higher efficiency in logistics achieved by the optimization of the tariff model in this sector and by acquiring the logistics center. The digitization strategy at Heidelberg has also been rewarded on the capital markets. For example, at the end of the period under review, a convertible bond was converted to equity almost in its entirety, which will see interest costs drop by approximately €5 million a year.

Medium-term targets in focus
Given the strong demand for the digital product portfolio in packaging and label printing and the expansion and increased networking in a digital business model (Equipment, Consumables, Service), Heidelberg sees itself as being on course to achieve the company targets for 2022 that were announced in June (company sales ~€3 billion / EBITDA of €250 – 300 million / net result > €100 million). The additional revenues from new applications via digital platforms are being grown by the ongoing expansion of an eCommerce platform. Through the announced efficiency enhancements and improvements to the cost structure, operational excellence measures are set to drive up profitability by approximately €50 million.

Heidelberg starts the new financial year 2017/18 with an increase in sales and earnings
As indicated, net sales and the net result in the first quarter of the year under review have improved over the same quarter of the previous year. For example, sales rose compared to the previous year, reaching €495 million (same quarter of previous year: €486 million). This was attributable primarily to Western Europe and China. As anticipated, at €629 million, incoming orders were below those of the same quarter of the previous year (€804 million), which saw a particularly high level of incoming orders from the drupa trade show. The order backlog increased by over 20 percent from €497 million at the end of the financial year to €603 million as at June 30, 2017.

Profitability, as expressed in EBITDA and EBIT, increased in the quarter under review compared to the previous year’s values. At €14 million, EBITDA was far better than in the same quarter of the previous year (€1 million), while EBIT amounted to €–3 million (previous year: €–16 million). Due to lower financing costs, the financial result improved to €–13 million (same quarter of previous year: €–16 million). Including income taxes, the net result after taxes of €–16 million was a significant improvement over the previous year’s figure (€–37 million).

As a result of company and real estate acquisitions and payments for portfolio optimization, free cash flow in the first three months was negative, at €–13 million (previous year: €6 million). Compared to the financial year-end, shareholder’s equity increased to €382 million on the balance sheet date (previous year: €167 million). This increase is largely due to the almost complete conversion of the convertible bond into Heidelberg shares and a slight increase in the actuarial interest rate for pensions in Germany. The equity ratio as at June 30, 2017 was approximately 17 percent. Financial liabilities dropped significantly, largely due to the almost complete conversion of the convertible bond, and net financial debt shrank to €234 million (previous year: €263 million).

“The almost complete conversion of a bond into shareholder’s equity is further evidence that our digitization strategy is being acknowledged on the capital markets. The repayment of the convertible bond has brought us closer to our goal of achieving a sustainable improvement in net interest income. We want to reduce interest costs, which currently stand at €34 million, to €20 million annually in the future,” says Dirk Kaliebe, CFO at Heidelberg, commenting on developments.

Outlook: Sights still set on the year-end targets for 2017/18
In financial year 2017/18, Heidelberg is focusing on initiating and implementing its key strategic measures – the strengthening of technology leadership, digital transformation, and operational excellence – under the umbrella of “Heidelberg goes digital”. Although these activities will not have a noticeable impact on operations in financial year 2017/18, they will play an important role in helping to achieve the company’s medium-term targets.
As announced at the Annual Press Conference on June 8, 2017, sales in financial year 2017/18 are set to reach the same level as the previous year. This is due to the anticipated development in order levels, the acquisitions that have already been completed, and – a measure that will have an inverse effect on sales – the avoidance of low-margin or high-risk activities.

In financial year 2017/18, the company aims to achieve an EBITDA margin in the region of 7 to 7.5 percent through efficiency improvement measures. Compared to the previous year and factoring in a further improvement in the financial result, net profit after taxes is set to show a moderate increase.
(Heidelberger Druckmaschinen AG)

Newsgrafik #117778
 21.08.2017

KaiCell Fibers appoints Esko Nenola as Director of Wood Supply  (Company news)

Finland’s KaiCell Fibers Ltd has appointed Esko Nenola (photo), Forest Engineer, M.Sc. (Business Administration), Director of Wood Supply for the company’s biorefinery venture in Paltamo. He brings extensive international experience in wood sourcing and the entire forest relates value chain, as well as having taken part in corporate restructuring and other strategic tasks. Among his previous management position he was leading the mechanical wood processing operations of Swedwood/IKEA in Russia.

KaiCell Fibers CEO, Jukka Kantola: “Esko is an extremely welcome addition to the KaiCell team, especially since he is already very familiar with the project through our feasibility study, in which he played an important part. Our team can now confidently manage the complete value chain from stumpage to final market; another indication that the venture is in capable hands.”

For his part, Esko Nenola commented: “It feels great to have joined a strong professional team driving a venture with great potential towards realisation.”
(KaiCell Fibers Ltd)

Newsgrafik #117780
 21.08.2017

Clearwater Paper Reports Second Quarter 2017 Results  (Company news)

Clearwater Paper Corporation (NYSE:CLW) reported financial results for the second quarter of 2017.

The company reported net sales of $429.7 million for the second quarter of 2017, down 1.6% compared to net sales of $436.7 million for the second quarter of 2016. Net earnings determined in accordance with generally accepted accounting principles, or GAAP, for the second quarter of 2017 were $8.0 million, or $0.48 per diluted share, compared to net earnings of $20.9 million, or $1.21 per diluted share, for the second quarter of 2016. The decrease in net earnings was due primarily to a planned bi-annual major maintenance outage at the Company's Arkansas mill in the second quarter of 2017 and higher input costs for energy, pulp, chemicals, and packaging supplies. Excluding certain non-core items identified in the attached Reconciliation of Non-GAAP Financial Measures, second quarter 2017 adjusted net earnings were $7.9 million, or $0.48 per diluted share, compared to second quarter 2016 adjusted net earnings of $23.5 million, or $1.37 per diluted share.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, was $45.7 million for the second quarter of 2017 compared to $62.2 million for the second quarter of 2016. Adjusted EBITDA for the quarter was $45.0 million, down 32.1% compared to second quarter 2016 Adjusted EBITDA of $66.3 million. The $21.3 million decrease in adjusted EBITDA was primarily a result of the same major maintenance and higher input costs affecting GAAP net earnings in the second quarter of 2017.

"We achieved solid second quarter results that were in line with our quarterly outlook," said Linda K. Massman, president and chief executive officer. "The positive impacts to the quarter included higher prices and a stronger sales mix for paperboard, which were offset by higher external pulp pricing and lower consumer product shipment volumes, as parent rolls were used to build needed inventory.

I am also pleased to share that our previously disclosed strategic projects remain on time and within budget, and we continue to believe this will position us to more efficiently partner with and meet the needs of our customers in the future," said Massman.

SECOND QUARTER 2017 SEGMENT PERFORMANCE
Consumer Products
Net sales in the Consumer Products segment were $231.9 million for the second quarter of 2017, down 6.5% compared to second quarter 2016 net sales of $247.9 million. This decrease was due to lower parent roll sales resulting from the shutdown of two higher cost paper machines at the Neenah, Wisconsin mill at the end of 2016 and a 1.7% decrease in retail tons sold.

Consumer Products had operating income of $10.5 million in the second quarter of 2017, compared to operating income of $18.5 million in the second quarter of 2016. After adjusting for certain non-core items identified in the attached Reconciliation of Non-GAAP Financial Measures, adjusted operating income of $11.8 million for the second quarter of 2017 was down from $19.1 million in the same period in 2016. Consumer Products operating margin decreased to 4.5% in the second quarter of 2017 from 7.5% in the second quarter of 2016. The adjusted operating margin decreased from 7.7% in the second quarter of 2016 to 5.1% in the second quarter of 2017 due to higher input costs for transportation, pulp, natural gas, and packaging supplies, partially offset by lower wage and benefit costs resulting from the implementation of warehouse automation, and the previously mentioned shutdown at the Neenah mill.

• Total tissue sales volumes of 91,450 tons in the second quarter of 2017 decreased by 7.7% and converted product cases shipped were 12.7 million, down 3.9%, each compared to the second quarter of 2016.

• Average tissue net selling prices increased 1.6% to $2,533 per ton in the second quarter of 2017, compared to the second quarter of 2016.

Pulp and Paperboard
Net sales in the Pulp and Paperboard segment were $197.8 million for the second quarter of 2017, up 4.8% compared to second quarter 2016 net sales of $188.8 million. The increase was primarily due to higher paperboard shipment volume, which includes sales from the operations of the former Manchester Industries acquired in December 2016. Operating income for the quarter decreased $18.4 million to $21.6 million, compared to operating income of $40.0 million for the second quarter of 2016, primarily due to approximately $9 million in major maintenance at the Arkansas mill and higher input costs for natural gas, electricity, chemicals and pulp and higher wages and benefits due to annual increases. In addition, second quarter 2016 operating income included the receipt of a net $2.8 million in partial reimbursement of previously incurred costs related to performance issues with the recovery boiler at the Arkansas mill.

• Paperboard sales volumes increased 4.0% to 207,152 tons in the second quarter of 2017, compared to 199,132 tons in the second quarter of 2016.

• Paperboard net selling prices increased 0.7% to $955 per ton compared to the second quarter of 2016.
(Clearwater Paper Corporation)

Newsgrafik #117782
 21.08.2017

Mayr-Melnhof Group: Results for the first Half-Year 2017  (Company news)

• Solid sales and volume
• Results as expected still below previous year
• Ordering situation is strengthening

The Mayr-Melnhof Group achieved overall high capacity utilization in the first six months of 2017 and was able to maintain the previous year’s level in sales and volume. As expected, results are still below the previous year. In the cartonboard division strongly increased recovered paper prices were just gradually compensated through higher cartonboard prices. In the packaging division last year’s second quarter earnings were supported by a favorable product mix.

The development of new organic growth opportunities in and outside Europe was consequently continued through ongoing investment activity.

The Group’s consolidated sales rose slightly from EUR 1,142.2 million to EUR 1,150.3 million. Both divisions contributed to this rise.

At EUR 102.1 million, operating profit was EUR 8.7 million or 7.9 % below the value for the first half of the previous year (EUR 110.8 million). Thus, the Group's operating margin was at 8.9 %, following 9.7 % in the first six months of 2016.

Financial income of EUR 1.3 million (1st half of 2016: EUR 1.6 million) was offset by financial expenses of EUR -2.9 million (1st half of 2016: EUR -3.2 million). Owing to the deconsolidation of the Tunisian packaging companies, a one-off expenditure of EUR 2.3 million was incurred due to the accumulated foreign currency translation, which is reported under “Other financial result – net”.

As a result, profit before tax reached EUR 97.0 million (1st half of 2016: EUR 108.9 million). Income tax expense totaled EUR 25.1 million, following EUR 28.5 million in the first half of the previous year, resulting in an effective Group tax rate of 25.9 % (1st half of 2016: 26.2 %).

At EUR 71.9 million, the profit for the period was 10.6 % below the comparative figure for the previous year (1st half of 2016: EUR 80.4 million).

OUTLOOK
Ordering behavior on our European main markets is strengthening. As a result, on the one hand the generally high capacity utilization of the plants should continue, and on the other hand the main focus of both divisions will be on passing on increasing input prices as well as on improving cost efficiency. The target for 2017 remains to match the 2016 results as best possible. Our long-term growth course will be consistently pursued.

Against the background of increasingly better demand on the European cartonboard market, the average order backlog of MM Karton in the first half of 2017 was around 76,000 tons, following 50,000 tons in the comparative period of the previous year. At around 98 % (1st half of 2016: 97 %) the division's capacities during the first six months of the year were almost fully utilized again.

A significant price increase of the strategic raw material recovered paper proved to be a special challenge that MM Karton successfully met with gradually improving cartonboard prices and a flexible sales policy. Recovered paper prices were in particular driven by strong demand from Asia as well as stockpiling for new European corrugated base paper plants and finally strengthening demand in Europe as well.

Both production and tonnage sold, each at 844,000 tons, were slightly above or matched the comparative figures of the previous year (1st half of 2016: 839,000 tons or 844,000 tons respectively). With a share in sales of approximately 79 % for Europe and 21 % for non-European markets (1st half of 2016: 82 % and 18 % respectively), slightly more was sold on markets outside of Europe.

Sales rose moderately to EUR 524.2 million (1st half of 2016: EUR 521.9 million) as the price increase for recycled cartonboard only began to take effect as of the second quarter. Operating profit, at EUR 35.1 million, was consequently below the comparative period of the previous year (1st half of 2016: EUR 39.1 million). The operating margin reached therefore 6.7 % (1st half of 2016: 7.5 %).

Demand on the European folding carton market was restrained throughout the first few months of the year, and started to show signs of improvement just at the end of the second quarter. The first half-year was therefore characterized by continued strong price competition due to sufficient production capacities as well as heterogeneous capacity utilization between our production sites, which, however, diminished.

In this challenging industry environment, MM Packaging succeeded in solidly maintaining its position due to the focus on cost leadership and by covering a wide spectrum of sectors and countries.

Sales recorded a slight increase from EUR 671.3 million to EUR 674.6 million. With operating profit totaling EUR 67.0 million, it was not possible to entirely match the strong figure set in the comparative period of the previous year related to a good product mix (1st half of 2016: EUR 71.7 million). Nevertheless, the operating margin, at 9.9 % (1st half of 2016: 10.7 %) stayed at a good level.

Tonnage processed, at 375,000 tons, remained almost unchanged (1st half of 2016: 380,000 tons), as did the sheet equivalent at 1,118.8 million (1st half of 2016: 1,128.0 million).

Expansion in Iran and Vietnam
The development and expansion of our sites in Tehran, Iran, and Ho Chi Minh City, Vietnam, continued with the extension of the machinery in technology and capacities focusing on high performance and quality.

Broadening of production base in Jordan
In Jordan, capacities at the site in Amman were extended as well as technologically enhanced in order to allow a further growth step with international customers.

New set-up in Tunisia
In Tunisia, the production of MM Packaging was transferred into a joint venture with the local market leader.
(Mayr-Melnhof Karton Gesellschaft m.b.H.)

Newsgrafik #117783
 21.08.2017

Nippon Paper Industries Reviews the Production Structure of Coated Paper  (Company news)

- Shutdown of the coating machine No.1 at Akita Mill and the coating machine No. 2 at Ishinomaki Mill -

Nippon Paper Industries Co., Ltd. (President: Fumio Manoshiro; hereinafter "the Company") announces that due to declining domestic demand for coated paper, it will shut down the coating machine No.1 operating at Akita Mill (Akita City, Akita) and the coating machine No.2 operating at Ishinomaki Mill (Ishinomaki City, Miyagi), respectively, at the end of May 2018.

Domestic demand for printing paper is in structural decline with the decrease in the number of children and the increasing availability of electronic media. In particular, coated paper has been recording negative 4% annual growth. Looking ahead, this trend is expected to continue. The Company has therefore decided to shift the production of coated paper, which is manufactured through the two coating machines, to other mills to establish a more efficient production system based on consolidation. This will strengthen the Company's competitiveness of its coated paper business.

Currently, the coating machine No.1 at Akita Mill and the coating machine No. 2 at Ishinomaki Mill manufacture coated woodfree paper.
(Nippon Paper Industries Co Ltd)

Newsgrafik #117787
 21.08.2017

Torraspapel Malmenayde, Lecta's Distributor in France, partners with Canon  (Company news)

The new business alliance will expand Lecta’s already wide product range.

Continuing to diversify its activities, Torraspapel Malmenayde is partnering with Canon to sell large-format printing machines of the Pro and IPF lines (6, 8 and 12 ink tanks), as well as ink cartridges and other accessories for these machines.

These consumables are compatible with all printing machines on the market and can be used for all kinds of graphic applications, including technical design, canvasses, outdoor supports and fabrics.

The business alliance with Canon reaffirms Torraspapel Malmenayde’s position as a global supplier and expands its already wide range of products: graphic and non-graphic printing supports, machines, consumables, etc. It also creates an opportunity for developing new digital paper ranges and visual communication.

Thanks to the new partnership with the manufacturer of the widest range of printers on the market Torraspapel Malmenayde will be able to extend its customer service with new resources.

The Torraspapel Malmenayde sales team will present the new products in the near future.
(LECTA)

Newsgrafik #117805
 21.08.2017

APPLETON COATED FILES STATE PETITION FOR RECEIVERSHIP  (Company news)

COMPANY PLANS TO CONTINUE OPERATIONS WHILE STRATEGIC BUYER SOUGHT

Appleton Coated said that it has filed a voluntary state Chapter 128 petition for receivership to allow the company’s operations to continue under the supervision of a court-appointed receiver named by the Outagamie County Circuit Court.

Company officials said the petition and appointment of a receiver will allow the company to continue operations under the direction of the receiver, who will lead a process aimed at selling the company’s assets to a buyer who will continue operations.

“Despite the best efforts of our employees and ownership group and the introduction of new products, this step is the best option at this point,” said Doug Osterberg, Appleton Coated’s president and chief executive officer. “While the company has made significant progress in diversifying its product offerings and entering new markets, the overall business climate is very challenging, and operating under a state court-appointed receiver is the best route to transition the business to sustained profitability.”

Osterberg added that profitability in the North American graphics paper sector has deteriorated in recent years due to digitization of communications and currency exchange rates that favor imports. These factors produced a decline in domestic demand, excess capacity and aggressive price competition in the company's traditional coated and uncoated paper businesses, he said. He also noted that these market conditions combined with recent increases in raw material costs, especially market pulp, yielded lower sales volumes and declining profit margins.

Osterberg said the filing will also relieve the company’s burdensome debt and help attract an appropriate buyer. Operating results, he said, are expected to improve in the near term as the company fills unused capacity by moving into both the high-value graphics and commodity segments of containerboard packaging. He noted that the company will continue to take advantage of the many new and innovative products it has developed and in which it is a market leader, such as environmentally responsible products and products for high-speed digital inkjet printing, one of the few growth segments in printing.

He said the company’s bank has agreed to fund operations during the receivership and that the business will continue to operate during the transition. He added the company will be able to pay salary and wages and fund benefits for current employees.

While operations will continue, a WARN (Worker Adjustment & Retraining Notice) Act notice and a notice under the Wisconsin Business Closing Law must be provided, according to federal and state law. The notices are required in this case because the structure of the Chapter 128 proceeding technically results in the administrative termination of all employees at the end of the process, even though the receiver will try to sell the operation as a going concern. A buyer of the business will be requested to immediately rehire substantially all employees under its new ownership and operation of the business.

“The strategic location of Appleton Coated, coupled with the experience, knowledge and work ethic of its employees and the size and capabilities of its paper making machines and equipment, make it a logical candidate to transition to high value segments of the packaging market. We, therefore, expect, but cannot guarantee that a suitable buyer will be identified who will value the company’s strong workforce and be willing to invest in the future,” stated Osterberg.

Osterberg said he expects the Outagamie County Circuit Court to appoint Milwaukee attorney Michael Polsky of Beck, Chaet, Bamberger and Polsky, S.C. as Appleton Coated’s Receiver. Polsky has considerable experience in the field and has successfully worked with a number of Wisconsin companies in similar situations. Under state law, the receiver will continue to operate the business and manage the company’s assets, liabilities, finances and employees for the benefit of all creditors under the supervision of the Court.

“This has not been an easy decision for the ownership group that bought Appleton Coated three years ago, but market changes and world-wide economic conditions have forced our hand, and as difficult as this decision is, it’s the best move at this point,” Osterberg said.
(Appleton Coated LLC)

Newsgrafik #117769
 18.08.2017

Henk Rogiers new CFO to Van Genechten Packaging  (Company news)

Van Genechten Packaging has elected Henk Rogiers (photo) as their new Chief Financial Officer effective as of September 4th.

A strong business partner with M&A background who has gained broad financial management experience and exposure to the packaging, waste management and entertainment industry to support Van Genechten Packaging in its further growth plans.

At home in all aspects of Finance, also within Packaging …
Henk succeeds Frederic de Somer who will focus on his Executive Director mandate at Board of Directors level. Before joining the Company Henk started his career in 1992 and since then he has held various Finance functions from Local Divisional Manager to Group CFO in both privately owned as listed companies, such as Shanks Group PLC (2012-today), Kinepolis Group (2009-2012), KPMG (2007-2009) and Graphic Packaging International (2001-2006).

Henk masters all aspects of Finance, from the core functions (tax, treasury, compliance, legal, corporate finance) to performance management, business planning, M&A and transformation. He always aims to work with his finance team as a true business partner and strives to improve the organization and process.

… combined with a great sense of leadership
Henk has experience in leading large multi-disciplinary teams in different countries, is participative and grants his people an adequate level of autonomy. A real change manager, strong at motivating people and unleashing their talent.

The combination of his extensive financial expertise and great leadership are clear assets that will help the Company focus on its 3 key pillars; people, results and growth, enhancing the quality and service it provides its customers.

‘I’m really glad to welcome Henk on board of our team and I’m very confident that his business and people approach will help bring Van Genechten Packaging to its next stage of development’, says Arnauld Demoulin, CEO.

‘Henk's vast experience as a CFO in privately owned and stock quoted companies is an excellent basis to improve the integration between the different financial disciplines inside our Group’, says Frederic de Somer, previous CFO of the Company, Executive Director of the Board of Directors VGPI and shareholder.

‘Being able to join the Van Genechten Packaging Group leadership team at this stage and jointly build from the past, in a market that I am familiar with, is a really nice challenge. I am proud that Ican bring my experience from CFO advisory, M&A projects and different finance roles to thisbeautiful Belgium based international industrial company’, concludes Henk Rogiers.
(Van Genechten Packaging N.V.)

Newsgrafik #117772
 18.08.2017

KUKA invests in the Augsburg site  (Company news)

KUKA is investing in its home location Augsburg. In the coming years, the automation specialist will invest more than 100 million euro in the expansion and modernization of its headquarters in the east of Augsburg.

Photo (from left to right) Carola Leitmeir and Armin Kolb, members of KUKA's works council and members of KUKA's supervisory board, KUKA CFO Peter Mohnen, Lord mayor of Augsburg Dr. Kurt Gribl, Bavaria's minister of economic affairs Ilse Aigner, KUKA CEO Dr. Till Reuter, Michael Leppek, vice-chairman of the supervisory board, Eva Weber, 2nd lord mayor of the city of Augsburg and Gerd Merkle, Head of the building department of the city of Augsburg.

“KUKA has developed into a worldwide innovation leader in Industrie 4.0 in recent years,” says Dr. Till Reuter, CEO of KUKA AG. “A key factor in this global success are KUKA’s German roots. We are investing in our home location and thus in our innovative strength.”

The construction project includes a new parking garage with 1,000 spaces, a new, two-level production hall as well as a new training center and an office tower. The new buildings are to be completed successively by 2025 and will provide room for a total of 1,600 workstations. This will not only create opportunities for new jobs and a modern working environment, but also compensate for the current shortage of space. Beyond this, the planned KUKA Campus is intended to encourage start-ups and partnerships with other companies and the Augsburg Innovation Park.

“Our home location meets important prerequisites for our development. The participation in start-ups and partnerships with business and science represent key aspects here,” notes Dr. Reuter. “Augsburg offers us the right environment for this.” Last year in summer, KUKA already inaugurated its new Development and Technology Center on Zugspitzstrasse in Augsburg. Thanks to this new concept, the training and production areas as well as further office spaces will be incorporated into a structure that is modern and can be expanded on a modular basis.

There is global demand for automation technology “made in Bavaria”. Ilse Aigner, Bavaria’s Minister of Economic Affairs, explains: “KUKA’s investments in Augsburg are a clear commitment to the location. Here, KUKA offers high-skilled jobs and apprenticeships. On the other side of the equation, the company finds ideal conditions for innovation and growth in Augsburg and Bavaria.”

The City of Augsburg welcomed the automation expert’s investment. “With the expansion, KUKA is not just investing in its traditional location in Augsburg, but in the future as well,” states Dr. Kurt Gribl, Mayor of the City of Augsburg. “As a worldwide market leader in automation, KUKA is a global player from the region. With the KUKA Campus, the company is underscoring the importance of exchange with additional players from the business and scientific community for future viability and is continuing to expand existing cooperative ventures. This is a development which dovetails perfectly with the direction of the City of Augsburg.”
(KUKA Roboter GmbH)

Newsgrafik #117774
 18.08.2017

Thomas Cord is LoeschPack's new Managing Director  (Company news)

Dr Thomas Cord (photo) has been the new Managing Director of machinery engineering company Loesch Verpackungstechnik since August. With experience in automation engineering, he intends to grow the company’s product range and reinforce its leading position in the confectionery industry.

The 52-year-old has many years of experience in packaging machinery engineering and automation engineering under his belt. Originally from Heidenheim, he studied for a degree in IT at the University of Karlsruhe in 1992 and then stayed on to be awarded a PhD five years later. During this time, his work at the Research Center for Information Technology covered projects relating to robotics and automation in machinery engineering. In 1998, Cord then became Research & Development Division Manager at ELAU, a manufacturer of automation solutions for the packaging industry. After the company was acquired by Schneider Electric, he was appointed Chief Executive Officer in 2005. From early 2010, Cord was CEO of the “Automation” Business Unit at Lenze, which develops and markets automation solutions for various segments of the machinery engineering industry.
Sustaining ambitious growth

Cord has been Managing Director of Loesch Verpackungstechnik since 1 August 2017, assuming the former duties of Andreas Graf, who departed from the packaging machinery company by mutual agreement. “My aim is to consolidate LoeschPack’s position as a market leader in confectionery packaging. We are an international technology company and thus exposed to global competition. This means that innovation, continuous development and a passion for detail are absolutely essential to our success. I will be counting on the skills, creativity and initiative of my employees to fulfil this brief,” says Cord. In the process, he remains fully committed to the heart of the corporate philosophy: “Our customers are key to the quality of our products. That’s why we will continue to focus on their needs and engage in in-depth dialogue with them.” It’s particularly in the field of digitisation that Cord sees an exciting future ahead: “In the next few years, the digital transformation will be one of the main challenges facing medium-sized machinery engineering companies. What it involves is not just the machinery itself but rather the intelligent networking of different processes and systems among users.” He wants to draw on his experience in various segments of machinery engineering to give valuable impetus to the company’s development and growth. “I’m looking forward to tackling the challenges ahead with a strong and efficient team,” says Cord. Olaf Piepenbrock, Managing Partner of LoeschPack’s parent company Piepenbrock, is highly enthusiastic about the partnership with Cord: “In securing Thomas Cord for our company, we’ve gained an acknowledged expert in his field. With his expertise and leadership qualities, he will help to drive LoeschPack’s business to new heights.”
(Loesch Verpackungstechnik GmbH)

Newsgrafik #117775
 18.08.2017

Klabin reports EBITDA 11% growth in second quarter of 2017  (Company news)

The company recorded adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$595 million in the second quarter of 2017

-Adjusted EBITDA reached R$595 million in the second quarter of 2017, up 11% from the same period in 2016.

-Driven by the increase in pulp sales, total sales volume reached 777,000 tons in the second quarter of 2017, an increase of 23% year on year.

-The Puma Unit successfully completed the ramp-up process in the second quarter to reach the pulp production cash cost planned by Klabin.

-The company’s strategy for the conversion segment boosted sales of converted products (corrugated board packaging and industrial bags) in the second quarter, which reached 190,000 tons, up 8% from the second quarter of 2016.

Klabin, Brazil's largest paper producer and exporter, the leading manufacturer of paper and board for packaging, corrugated board packaging and industrial bags, and the only company in Brazil to produce hardwood, softwood and fluff pulp in the same plant, registered its 24th consecutive quarter of growth in financial results. The company recorded adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$595 million in the second quarter of 2017, which is 11% higher than in the same period in 2016.

In the second quarter of the year, the company highlights in its balance sheet the strong and sustained performance of the Puma Unit which, after the annual maintenance shutdown at the end of March this year, concluded the ramp-up process and recorded pulp sales volume of 337,000 tons in 2Q17, 12% higher than in 1Q17.Of the total sales volume in the second quarter of this year, 252,000 tons were hardwood pulp and 85,000 tons were softwood and fluff pulp.

The strong performance of the Puma Unit drove Klabin’s total sales volume in the second quarter of 2017 which, together with the solid performance by the paper and conversion units, reached 777,000 tons (excluding wood), up 23% from 2Q16.Net sales revenue totaled R$1,984 million in the second quarter of 2017, increasing 17% from the same period last year.

Another highlight is the increase in sales volume of conversion products, in which Klabin registered growth of 8% in the second quarter of 2017 compared to the same period last year.In the half yearly comparison, the increase was 10% this year compared to last year.This growth was due to acquisitions in the corrugated board market at the end of 2016 (Embalplan and Hevi Embalagens) and demonstrates Klabin’s adaptability and competitiveness in diverse markets and adverse scenarios.

Investments
Klabin invested R$209 million in the second quarter of 2017, of which R$43 million went to the Puma Unit, R$64 million to forest operations, R$87 million to working capital of plants and R$15 million in high-return projects aimed at improving the company’s performance in all of its operating segments.
(IKPC Indústrias Klabin de Papel e Celulose S.A.)

Newsgrafik #117777
 18.08.2017

Tembec pushes the limits of viscosity  (Company news)

After several months of laboratory work by the Research and Development team in Bordeaux France, Tembec has developed a very high viscosity cellulose grade. Just days ago, the production of this new grade, called Biofloc XV20, took place at the Tartas Specialty Cellulose mill (photo) in France. It is a tremendous success because a new world record for viscosity of a wood pulp was achieved.

Tembec, the world leader in specialty cellulose for use in the production of cellulose ethers, responded to the needs of its main customers. “This new product can now compete directly with cotton linter pulp and opens new opportunities for our customers,” said Christian Ribeyrolle, Executive Vice President of the Specialty Cellulose Group. “Our customers in this segment needed a replacement for cotton linter pulp by a product which is less affected by market cycles but is of equivalent quality. Biofloc XV20 is now part of our product portfolio.”

Many customers have expressed a strong interest in Biofloc XV20 and the product will be shipped from the Tembec Tartas warehouse in just a few days.
(Tembec Inc.)

Newsgrafik #117761
 17.08.2017

Harvesting for Metsä Group's bioproduct mill begins  (Company news)

Harvesting wood for the needs of the bioproduct mill in Äänekoski started on 11 August 2017. Until now, wood has been delivered to the old pulp mill and for the test runs of the new mill. The bioproduct mill start-up will begin in mid-August 2017.

Buying woodfor the bioproduct mill began already in 2016. Direct harvesting begins today with thinning in the forest of Metsä Group’s owner-member Timo Akselin in Uurainen, Central Finland. The harvesting at the stand was carried out by the Saarijärvi-based Forest-Linna Oy, and the transportation was taken care of by Kuljetus H & H Heinonen Oy, based in Multia.

“The start-up of the bioproduct mill is drawing closer, and we can now start increasing the harvesting volumes,” says Juha Mäntylä, EVP, Wood Supply, Metsä Group. Harvesting volumes will increase gradually this and next year. The bioproduct mill will reach its nominal production of 1.3 million tonnes of pulp approximately a year after its start-up.

The bioproduct mill will increase Metsä Group’s wood supply in Finland by approximately a fourth. The bioproduct mill impacts wood supply across the country – the directions of wood flows and the mills’ supply areas will change. The increasing wood supply will bring more than a thousand new jobs to the entire chain in Finland. Forest owners’ annual sales incomes from wood are expected to grow by approximately EUR 70 million.

Ninety per cent of the wood will be certified
The bioproduct mill will increase the use of softwood in Finland by about four million cubic metres. All in all, annual harvesting volumes will increase by 6–7 million cubic metres, because the harvesting will also yield log wood and energy wood.

“Our wood use will grow, and we want to shoulder increasing responsibility for the sustainable use of forests. Ninety per cent of the wood used by the bioproduct mill will come from certified forests,” says Mäntylä.

“According to the feedback we’ve gathered from forest owners, they are very happy with the quality of our contractors’ harvesting work. It’s easy to start harvesting considerably larger quantities of wood when you can rely on the contractors doing their job well, under all conditions.”

Electronic wood trading set to expand
The wood used by the bioproduct mill is purchased in Finland, the majority of it coming from within a radius of 100–150 kilometres of the mill. “We aim to purchase the additional wood, first and foremost, from Metsä Group’s owner-members,” says Mäntylä.

Metsä Group’s owner-members have had the opportunity to engage in entirely electronic wood trading since June 2005. As of July this year, electronic wood trading and the purchase of forest services has also been possible for other forest owners. In the first half of the year, as much as nearly 30 per cent of the wood purchased by Metsä Group was purchased through electronic means. In terms of forest services, this proportion was even higher.
(Metsä Group)

Newsgrafik #117762
 17.08.2017

Canfor Pulp Products Inc. Announces Second Quarter 2017 Results and Quarterly Dividend  (Company news)

Canfor Pulp Products Inc. ("CPPI") (TSX: CFX) reported net income of $20.2 million, or $0.31 per share, for the second quarter of 2017, compared to $24.1 million, or $0.36 per share, for the first quarter of 2017 and $2.2 million, or $0.03 per share, for the second quarter of 2016. For the six months ended June 30, 2017, the Company's net income was $44.3 million, or $0.67 per share, compared to $25.3 million, or $0.37 per share, for the six months ended June 30, 2016.

Photo: CPPI's Chief Executive Officer, Don Kayne

The Company reported operating income of $31.5 million for the second quarter of 2017, down $3.7 million from $35.2 million reported for the first quarter of 2017. Solid increases in the Company's Northern Bleached Softwood Kraft ("NBSK") pulp unit sales realizations and higher paper unit sales realizations largely offset the impact of scheduled maintenance outages taken during the quarter at the Company's Northwood NBSK pulp mill and Taylor Bleached Chemi-Thermo Mechanical Pulp ("BCTMP") mill.

NBSK pulp average list prices to China, as published by RISI, moved up by US$25 per tonne, reflecting the carry-over of strong demand from the previous quarter well into the spring maintenance period. Towards the end of the current quarter, demand started to show weakness in some regions, notably China. NBSK pulp unit sales realizations materially improved compared to the previous quarter, reflecting the strong pricing through most of the quarter, as well as quarter-over-quarter pricing on shipments of orders taken in the previous quarter, and a weaker Canadian dollar. BCTMP US-dollar list prices continued to trend positively through the second quarter of 2017 and sales realizations were further benefited from a weaker Canadian dollar. Lower energy revenue in the current quarter reflected both scheduled maintenance downtime and seasonally lower energy prices.

Pulp shipment and production volumes were down 18% and 13%, respectively, from the previous quarter principally reflecting approximately 40,000 tonnes of lower production available for sale, largely due to the Company's scheduled maintenance outages and, to a lesser extent, several operational upsets. Shipments for the first quarter of 2017 also included a 14,000 tonne vessel shipment that slipped from December 2016. Pulp unit manufacturing costs were up from the previous quarter principally as a result of the aforementioned outages, and, to a lesser extent, market-related increases in fibre costs, which more than offset seasonally lower energy prices and usage.

Operating income in the Company's paper segment at $6.6 million was down $0.5 million from the first quarter of 2017, as slightly higher paper unit sales realizations in the current quarter, mostly attributable to the weaker Canadian dollar, offset modest increases in paper unit manufacturing costs, which, for the most part, reflected significantly higher prices for slush pulp and, to a lesser extent, the timing of spend on maintenance.

During the second quarter of 2017, the Company negotiated new four-year collective labour agreements with its unions, which have been ratified by all union members.

Commenting on the Company's second quarter of 2017 results, CPPI's Chief Executive Officer, Don Kayne said, "The favourable market conditions allowed us to again generate solid financial results this quarter, despite our seasonally higher scheduled maintenance downtime. With our largest maintenance outages behind us, our focus is on optimizing our production performance and sales mix through the balance of the year in light of the additional global pulp capacity and the risk of potential pressure on pricing in the back half of the year." Commenting on Canfor Pulp's new labour agreements, Kayne said "We are pleased to have new agreements in place that provide labour stability."

Looking ahead, global pulp markets are currently anticipated to see lower operating rates in the second half of 2017 with the introduction of significant new pulp capacity in the latter part of 2017 and into 2018. For the month of July 2017, the Company announced a decrease of US$10 per tonne for NBSK pulp list prices to China, while NBSK pulp list prices to North America are unchanged from June 2017.

Results in the third quarter of 2017 will reflect a scheduled maintenance outage at the Intercontinental pulp mill, with a projected 8,000 tonnes of reduced NBSK pulp production, as well as higher associated maintenance costs and lower projected shipment volumes.

Subsequent to quarter end, Canfor Pulp announced plans to undertake two significant energy capital projects at its Northwood NBSK and Taylor BCTMP mills, at an estimated cost of $105 million.
(Canfor Pulp Limited)

Newsgrafik #117767
 17.08.2017

Voith's Servolution concept brings better performance and fewer production downtimes to Papel Aralar  (Company news)

-Individually tailored service packages
-Greater data transparency means more efficient operations on site
-Reduced use of resources and better paper quality

Through its ''Servolution" concept, Voith offers comprehensive, tailor-made service expertise that covers all machine segments and supports customers from the planning phase over the entire service life of the machine and beyond. Under this kind of partnership, Spanish paper manufacturer Papel Aralar entrusted its entire service operations to Voith and is now benefiting from higher machine availability and improved paper quality.

Photo: Voith supports and advises its partners from the initial planning phase through the entire service life of the machine and beyond.

"Voith's experts always have an overview of the entire process. They are familiar with the latest state-of-the-art and capable of determining when new technologies should be integrated," says Senen Amunarriz, Managing Director of Papel Aralar. This is why the paper manufacturer located to the east of Bilbao has outsourced all service and maintenance works to Voith. In doing so it is reaping the benefits of the expertise that Voith has accumulated in its 150 years of existence. And the outcomes prove that this was the right decision for Papel Aralar, because since partnering with Voith the company has experienced far fewer production downtimes. And Papel Aralar can go back to focusing on its core area of expertise – the production of paper.

Voith has brought together its comprehensive, tailored service packages in the Servolution concept. A major feature of the concept is the close contact with customers. This means that Voith supports and advises its partners from the initial planning phase through the entire service life of the machine and beyond. In doing so Voith helps its customers increase machine availability, process reliability, paper quality and production speed. The maintenance and optimization services include proposing solutions for significantly reducing consumption of energy, water and raw materials. Apart from maintaining all machine components, Voith also provides Papel Aralar with IT support.

A high level of data transparency and its availability at all times are key elements of the Servolution concept. Because not only do the data provide the basis for efficient operations on site, this digital support also supplies important information for predictive maintenance.

At Papel Aralar, therefore, the partnership includes regular audits conducted jointly by Voith and the company's production team. In this context, Voith's service team proposes various options for improvements. Already, the consumption of energy, raw materials and chemicals could be reduced as a result. And at the same time, the cost efficiency and quality of the paper was increased.

''As the Voith team is permanently on site and knows the facilities inside out, any optimization proposals can be readily implemented in the short term,'' says Mitxel Etxezarreta, Managing Director of Voith Paper Spain.

Papel Aralar is completely convinced of the success of its collaboration with Voith: Senen Amunarriz has already signaled that the papermaker wishes to extend the service contract, which is due to expire in 2019, by another five years.
(Voith Paper GmbH & Co KG)

Newsgrafik #117770
 17.08.2017

Cascades announces the construction of a new packaging plant in New Jersey  (Company news)

Cascades Inc. (TSX: CAS), the leader in recuperation of recyclable materials and in manufacturing of green packaging products and tissue paper, announces an investment of $80 million USD for the construction of a new containerboard packaging plant in Piscataway, New Jersey, United States.

This new plant, which will create 120 jobs, will manufacture corrugated packaging products and will be among the most modern of its kind in North America . It will begin operations in the second quarter of 2018. Once all equipment is installed, total annual production capacity will be 2.4 billion square feet. Ultimately, this represents an increase in the integration rate of approximately 5%. The facilities will have a surface area of more than 400,000 square feet.

"The investment, which is already included in our capital expenditure budget, is part of the deployment of our strategic plan that aims specifically to modernize our assets and increase the integration rate between our primary production and conversion activities. It is also part of our continuing process to reorganize and consolidate our containerboard and packaging activities in the northeastern United States. This investment will help us better serve our customers and boost our production capacity, thus increasing our market positioning," stated Mario Plourde (photo), President and Chief Executive Officer of Cascades.

"The Piscataway conversion plant will have state-of-the-art technology and will be among the fastest in the industry. It will offer increased flexibility and allow us to provide more efficient and innovative products to meet our customers' needs. Located close to the major urban centres along the eastern seaboard of the United States, the site was also chosen because it has room for subsequent development. This important investment strengthens our position and continues our growth," commented Charles Malo, President and Chief Operating Officer of Cascades Containerboard Packaging.

Cascades would like to thank its numerous partners and employees who made this project possible, and more specifically, the State of New Jersey, Middlesex County and the City of Piscataway.
(Cascades Inc.)

Newsgrafik #117791
 17.08.2017

ANDRITZ successfully starts up key production technologies for Metsä Group's new bioproduct ...  (Company news)

... pulp mill in Finland

International technology Group ANDRITZ has successfully completed start-up of the key production technologies for Metsä Group’s new bioproduct pulp mill with an annual capacity of 1.3 million tons of pulp in Äänekoski, Finland. All ANDRITZ processes were started up successfully according to the agreed schedules.

The core equipment supplied by ANDRITZ originates mainly from Finland, with a significant part being fabricated at the ANDRITZ workshop in Savonlinna.

With the installation and smooth start-up of the equipment supplied, ANDRITZ once again demonstrated its outstanding technological capabilities. ANDRITZ supplied the following equipment to Metsä Group’s bioproduct pulp mill:
-a wood processing plant, including three debarking and chipping lines, with the highest capacity in the world (pine/spruce/birch: 470/350/270 m3 solid-over-bark per hour)
-a flexible softwood/hardwood fiberline with the highest softwood capacity in the world (3,900 tons per day)
-the world’s most energy-efficient black liquor evaporation with the highest capacity in Europe (1,650 tons/hour)
-the largest recausticizing plant in Europe (white liquor production of 16,000 m3/day)

With this major delivery, ANDRITZ is once more strengthening its position as one of the world’s leading suppliers of key equipment for pulp mills.

“ANDRITZ is our long-term co-operation partner with whom we have developed our mills consistently. In the bioproduct mill project we have used an open-book project model, which has created good prerequisites for co-operation useful to both partners. The result is a world-class mill, which was built on time and on budget”, says Timo Merikallio, Project Director, from Metsä Group.
(Andritz AG)

Newsgrafik #117751
 16.08.2017

Resolute Reports Preliminary Second Quarter 2017 Results  (Company news)

Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) reported a net loss for the quarter ended June 30, 2017, of $74 million, or $0.82 per share, compared to a net loss of $42 million, or $0.47 per share, in the same period in 2016. Sales were $858 million in the quarter, down $33 million, or 4%, from the second quarter of 2016. Excluding special items, the company reported a net loss of $3 million, or $0.03 per share, compared to net income, excluding special items, of $2 million, or $0.02 per share, in the second quarter of 2016.

"This quarter's performance was a clear improvement from the first quarter," said Richard Garneau (photo), president and chief executive officer. "The results of our wood products segment were strong given higher prices associated with the U.S. imposition of trade barriers, while our market pulp segment recorded a solid performance despite production curtailments associated with annual outages. In tissue, the improvement in our profitability continued but remained short of expectations. Paper segments continued to be impacted by adverse market conditions, particularly in specialty grades."

Operating Income Variance Against Prior Period
Consolidated
The company recorded an operating loss of $47 million in the quarter, compared to an operating loss of $6 million in the first quarter of 2017, while adjusted EBITDA increased by $22 million over the same period, to $83 million.

The company's operating results were positively impacted by overall increases in pricing, particularly in our wood products and market pulp segments. Those improvements were partially offset by lower volumes in our market pulp and paper segments, as well as higher maintenance expenses related to annual outages at a number of our facilities.

The company also incurred $60 million of non-cash impairment charges in the second quarter in connection with the indefinite idling of a paper machine at Catawba (South Carolina), as well as to reflect the write-down of assets at the Coosa Pines (Alabama) facility.

Market Pulp
Operating income in the market pulp segment was $16 million, $9 million more than the first quarter. Following price increases implemented from the beginning of the year, realized prices in the segment rose by 7%, or $39 per metric ton, to $632 per metric ton. Shipments to third parties fell by 17,000 metric tons compared to the first quarter, largely resulting from annual outages in Calhoun (Tennessee), Thunder Bay (Ontario) and Coosa Pines, and lower demand for recycled grades during the period. The operating cost per unit (the "delivered cost"), rose by $8 per metric ton, reaching $583 per metric ton, resulting mostly from the maintenance outages. EBITDA per unit was $71 per metric ton compared to $42 per metric ton in the previous quarter. Finished goods inventory was substantially flat when compared to the first quarter.

Tissue
Our tissue segment, which included only the Atlas Tissue operations in the second quarter, reported a marginal improvement in its operating loss compared to the first quarter. The overall transaction price rose by $4 per short ton, as gains in converted products, particularly in retail, were partially offset by declining pricing for parent rolls. The delivered cost continued to decrease and fell by $6 per short ton. Overall shipments rose by 1,000 short tons. Consequently, quarterly EBITDA also rose marginally when compared to the previous quarter. Finished goods inventory of 8,000 short tons was unchanged from the previous quarter. We expect to include the results of our Calhoun tissue operations in our tissue segment in the fourth quarter of 2017.

Wood Products
The wood products segment recorded operating income of $45 million for the quarter, an improvement of $25 million against the previous quarter. Despite market unpredictability from the imposition of countervailing and anti-dumping duties in the quarter, shipments increased, reaching 509 million board feet. The average transaction price rose by $36 per thousand board feet to $386. The delivered cost went down by $11 per thousand board feet, mostly resulting from improved log yields and better efficiency. EBITDA for the segment was $52 million, a $23 million increase compared to the previous quarter and equivalent to $102 per thousand board feet, an increase of $45 per thousand board feet. Finished goods inventory dropped by 15% to 125 million board feet.

Similar to duty deposits associated with exports of supercalendered paper to the United States, the company has recorded duty deposits of $4 million on exports of lumber in "Other assets" in its consolidated balance sheet. Consequently, EBITDA as reported for the wood products segment does not include any amounts related to softwood lumber duties.

Newsprint
The newsprint segment incurred an operating loss of $7 million in the quarter, compared to a loss of $4 million in the first quarter. Pricing remained roughly stable at $509 per metric ton. Shipments fell by 46,000 metric tons, mostly from the permanent closure of our newsprint mill in Mokpo (South Korea) late in the first quarter, as well as continued structural demand decline. The delivered cost in the segment rose by $6 per metric ton compared to the previous quarter, as the combined impact of higher planned maintenance and lower volumes were offset by reductions in fixed costs associated with the closure of Mokpo and seasonally lower energy expenses. EBITDA was $10 million for the quarter, equivalent to $25 per metric ton, compared to $27 in the previous quarter. Finished goods inventory rose by 7,000 metric tons.

Specialty Papers
The specialty papers segment recorded an operating loss of $7 million during the second quarter, a decline of $11 million from the previous quarter. The average transaction price was lower by $8 per short ton, as demand continued to decrease. Shipments fell by 4% compared to the first quarter, to 349,000 short tons. The combination of volume reductions as well as higher maintenance and chemical usage translated into an increase in our segment delivered cost of $26 per short ton. EBITDA for the segment was $4 million in the quarter, equivalent to $11 per short ton, down from $44 per short ton in the previous quarter. Finished goods inventory declined by 7% to 93,000 short tons.

Consolidated Quarterly Operating Income Variance Against Year-Ago Period
The company recorded an operating loss of $47 million for the second quarter, compared to an operating loss of $18 million for the same period in 2016. The difference is mostly explained by higher charges associated with the combination of closure costs for a paper machine at Catawba and the impairment charge recorded for our Coosa Pines mill when compared to the second quarter of 2016.

Overall pricing gains reached $36 million compared to the second quarter of 2016, excluding a $4 million favorable impact from foreign exchange, and are mostly the result of increases in our wood products and market pulp segments, which rose by 19% and 4% respectively. While the average transaction price for newsprint was up by 1%, tissue fell by 11% and specialty papers declined by 3%. Delivered costs also rose when compared to the year-ago period, the result of rising energy and fiber expenses, as well as less favorable distribution costs.

Lower sales volumes in all our segments except wood products led to an unfavorable impact of $16 million during the quarter compared to the year-ago period. While shipments in wood products rose by 14% compared to the same period last year, specialty papers and newsprint fell by 9% and 22% respectively.

Corporate and Finance
The company invested $47 million in fixed assets during the quarter, $33 million of which was spent on the Calhoun tissue project. Also, total countervailing duty deposits of $11 million in the second quarter were recorded on our balance sheet, of which $7 million were attributable to supercalendered papers and $4 million to lumber.

As a consequence of an improvement in our profitability compared to previous quarters, a decrease in working capital, and the winding down of capital spending for the Calhoun tissue project, $41 million was repaid on our revolving credit facilities. Total liquidity rose by $34 million during the quarter and remained solid at $414 million.

Outlook
Mr. Garneau added: "As our results continue to improve, we remain focused on our short-term priorities of increasing sales in our tissue segment, battling unfair U.S. countervailing and anti-dumping duties and managing our indebtedness and liquidity to be in a position to continue our long-term transformation. Now that the uncertainty surrounding trade duties in lumber has started to dissipate, we expect market conditions to remain favorable. In pulp, we are cautiously optimistic that market conditions will remain relatively favorable at least through the third quarter. In tissue, I am confident that our progress will accelerate in the short-term with the addition of Patrice Minguez to our leadership team. In our paper segments, ongoing global demand declines are expected to continue."
(Resolute Forest Products)

Newsgrafik #117753
 16.08.2017

Vossen Profitec ® - Balance System  (Company news)

The cutting die - the most important tool in the production process of a cutting and creasing press - does not only include cutting rules, creasing rules and an efficient rubbering. A perfect pressure compensation is of particular importance. With the formula which was used by the die-makers for many years the results often were not satisfactory. The urgently required compensation of the pressure resistance succeeded very seldom. The saving of compensation rules never was worthwhile. The emerging higher set-up effort was always more expensive than the saved expenses. Often very time-consuming patching make-ready and even effortful zone patching make-ready was necessary. The associated idle time of the machine often was considerable.

The Balance System of Vossen Profitec provides the possibility for an all-over balance. The newly developed formula which is based on the machines‘ specific force per cm² calculates the cutting area and thus the pressure compensation exactly. With support elements, made of special technical plastic material, the system establishes a perfect plane parallelism and balance in the cutting area and provides an harmonic cutting process.

The Balance Elements are mounted in the four corners of a cutting die, the Balance Rods are mounted in the rear or lateral area of the cutting die. Amount and positions are calculated by a CAD module (PackDesign® by BCSI Systems BV) especially developed for this system. Both parts have studs on the bottom to mount them in the cutting die. The necessary holes are also specified by the CAD module and cut with the laser. The Balance Elements ans Balance Rods can easily be inserted or removed by hand as required. The machine operator himself is able to create a perfectly balanced cutting area within a very short period of time.

Advantages:
-Less rubbering
-Constant result with scoring-counter-scoring
-Long knife protection
-Undisturbed machine running
-High machine running speed
-Perfect balance in the cutting area
-Constant cutting results
-No more cutting variation
-Harmonic cutting process
-Very short set-up time
-Fast set-up of repeat orders
-Very little patching make-ready
-Hardly any section make-ready
(Vossen Profitec GmbH)

Newsgrafik #117754
 16.08.2017

Xerium Reports Q2 2017 Results  (Company news)

Highlights
-Q2 2017 sales of $120.3 million, compared to $124.0 million in Q2 2016. Q2 2017 sales were down (1.2%) versus Q2 2016, when measured on a constant-currency basis.
-Q2 2017 gross margin of 40.6%, a 170 basis point increase over the prior year period of 38.9%, as production efficiencies favorably impacted results.
-Q2 2017 income from operations of $14.9 million, up 1.7%, compared to the prior-year period due to production efficiencies, lower restructuring and SG+A cost reductions, partially offset by CEO transition costs and negative currency effects.
-Q2 2017 net loss of $(3.4) million, compared to $2.1 million of net income in the prior-year period.
-Q2 2017 adjusted EBITDA of $27.2 million, or 22.6% of sales, compared to adjusted EBITDA of $27.7 million, or 22.3% of sales in Q2 2016 (See Tables 2 and 4).
-Order backlog at $171 million, flat to Q2 2016 backlog levels.

Xerium Technologies, Inc. (NYSE:XRM), a leading, global provider of industrial consumable products and services, reported second quarter 2017 financial results.

Mark Staton, President and Chief Executive Officer said, “We reported a strong result in the second quarter of 2017, marking a notable margin improvement as our restructuring efforts wind down and our global facilities shift to execution and efficiency. This led to a solid adjusted EBITDA result of $27.2 million during the period, with a 30 basis point improvement in margin to 22.6%.”

Staton added, “We are now better positioned in the right geographies with enhanced capabilities in growing end-markets, and our business generates attractive adjusted EBITDA margins. Going forward our priorities are very clear, to maximize adjusted EBITDA growth and free cash flow from our enhanced platform, and aggressively pursue balance sheet improvement.”

Q2 Financial Highlights:
Q2 net sales were $120.3 million, a decrease of (1.2%) year-over-year on a constant currency basis (see Table 1). The decrease was driven by a constant currency sales decrease of (0.9%) in roll covers and (1.4%) in machine clothing. The sales decline relative to the prior-year period was due to weaker spreader roll sales in Europe and competitive pricing pressure in our Asian machine clothing business.

Q2 2017 gross profit was $48.9 million, or 40.6% of net sales, compared to $48.2 million, or 38.9% of net sales, in Q2 2016. Machine clothing gross margin improved to 43.7% in Q2 2017 from 41.6% in Q2 2016. The increase in gross profit margin was primarily due to production efficiencies partially offset by competitive pricing pressure in Asia. Rolls and service gross margin improved to 36.1% in Q2 2017 from a gross margin of 34.7% in Q2 2016 due to production efficiencies.

SG&A expenses (including Selling, G&A and R&D expenses) were $33.1 million, or 27.5% of net sales, in Q2 2017 versus $30.7 million, or 24.8% of net sales, in Q2 2016. The increase in SG&A expenses was due to incremental one-time CEO transition costs of $3.0 million incurred in Q2 of 2017, partially offset by cost-reduction initiatives.

Q2 2017 basic loss per share was $(0.21) versus Q2 2016 basic earnings per share of $0.13. Basic adjusted earnings per share (see Table 3) were $0.08 in Q2 2017 compared to $0.31 in Q2 2016 as a result of higher interest and income tax expenses, partially offset by improved operations.

GAAP income from operations in the second quarter of 2017 was $14.9 million, or 12.4% of sales, up $0.2 million, or 1.7% compared to Q2 2016. Q2 2017 adjusted EBITDA declined to $27.2 million, or 22.6% of net sales, due to negative currency effects, compared to $27.7 million, or 22.3% of net sales in 2016. Adjusted EBITDA increased 1.1% on a constant currency basis (see Table 2). The slight operational increase was driven by operational efficiencies, partially offset by lower sales. In addition to interest, taxes, depreciation and amortization, adjusted EBITDA excludes expenses related to the Company’s restructuring activities, plant start-up costs, stock-based compensation, unrealized foreign currency gains and losses and non-recurring expenses, including CEO transition costs.

Cash taxes were $3.0 million in Q2 2017, compared to $3.9 million in Q2 of 2016. Cash taxes are primarily impacted by income the Company earns in tax paying jurisdictions relative to income it earns in non tax-paying jurisdictions, primarily the United States.

Net cash provided by operating activities was $10.2 million and free cash flow was $7.1 million (see Table 5) during the second quarter of 2017. Free cash flow is expected to improve substantially in the second half of 2017, as a result working capital reductions, lower capital expenditures, and lower cash restructuring costs.

Net debt was $519.7 million at the end of Q2 2017 compared to $511.7 million at the end of Q4 2016. The Company's net debt leverage ratio is 5.3x (see Table 6). The Company plans to utilize its free cash flow to pay down debt and de-lever over the remainder of its debt maturities.

2017 Outlook
The first half of 2017 demonstrated a stable market environment, coupled with modestly improving sales trends. In the second half of 2017, the Company currently expects continued stability with some moderating influences to margin performance and volume. The Company reiterates previously disclosed guidance for 2017 full-year adjusted EBITDA to approximate at least 2016 levels.

Free cash flow for 2017 will be impacted by several discrete factors including CEO transition costs incurred during the period. As a result, the Company now expects full-year free cash flow to be in the low-teens range, with second half improvement driven by working capital reductions, reduced capital expenditures, and lower cash restructuring costs.
(Xerium Technologies Inc.)

Newsgrafik #117755
 16.08.2017

Domino launches new workflow solution for the labelling sector at Labelexpo Europe 2017  (Company news)

Domino Digital Printing Solutions is targeting the label industry with its latest DFE (Digital Front End) workflow solution designed for the N-Series range of digital colour presses.With improved operating speed and streamlined automation, DFEv2.0 maintains compatibility with the latest Esko code base and can work with a number of VDP (variable data printing) formats. DFEv2.0’s full capabilities will be showcased on the Domino stand at Labelexpo Europe 2017 (Stand 9A60, Brussels Expo, 25th – 28th September 2017).

“Workflow integration is a fundamental component for an efficient digital printing process that should not be underestimated,” explains Simon Howes, Product Manager – Digital Printing Solutions at Domino. “The effective management of press time while optimising print quality needs to be guaranteed, especially for brand-oriented sectors such as labelling and packaging.”

The new screener, Domino ScreenPro, streamlines the workflow by combining several processes into a single JDF workflow, which enhances speed and efficiency as well as enabling full offline VDP operation and additional capabilities within DFEv2.0. When compared to DFEv1.2, the increase in job processing speeds is significant, and has a major impact when using multiple page PDF files for variable data printing. For example, the RIP-to-print ratio of the latest version of ScreenPro is four to five times faster than the previous DFE solution.

The introduction of a new JDF workflow means automation is further enhanced. The need for manual file conversions is removed, while key information such as ‘lead-in/lead-out’, ‘copy count by quantity’ or ‘print run length’ can be passed from the DFE directly to the digital press, keeping operator intervention to an absolute minimum.

“While speed and automation are the two features likely to appeal the most to label printers, versatility also has an important role to play,” says Howes. “The new workflow adds the ability to work with various VDP formats, such as multiple page PDF and PDF/VT files for the printing of variable data, barcodes and 2D barcodes, offering the printer a wider range of options to work with.”

“With this new workflow, Domino is providing labellers with a comprehensive platform for managing integrated production and there is no better place to showcase the benefits of this technology than Labelexpo Europe,” concludes Howes. “We look forward to welcoming visitors to our workflow station on the Domino stand when the show opens in September.”
(Domino UK Ltd)

Newsgrafik #117758
 16.08.2017

EV Group is now a member of Runtech Group  (Company news)

EV Group has become a member of Runtech Group in April 2017. EVG will continue as an independent company, but by the acquisition, EVG and Runtech Systems together will be one of the biggest solution providers for the customers in the paper industry. We will be able to supply total machine line re-builds and modernizations with clearly bigger scope than before. Our process knowledge and solutions will improve for example in the following areas:

- Total runnability solutions in all process areas
- Speed and production increase projects in the all machine areas
- Total solutions for the dryer sections – including the web stabilizing technology and tail threading solutions
- Vacuum system solutions including the heat recovery plans and possible implementations of the heat recovery solutions
(EV Group Oy - EVG)

Newsgrafik #117689
 15.08.2017

All you can do at Print4All Conference  (Company news)

12 - 13 September 2017, Fiera Milano RHO, Centro Congressi Stella Polare

This event is part of the Made BY Italy promotional programme which ACIMGA association has been developing for years to support the Printing and Converting Industry.

Print4All Conference is organised in cooperation with ARGI (Italian Association of Graphic Industry Suppliers) and with the support of ITA – Italian Trade Agency and the Ministry for Economic Development.

The Conference is the opportunity to spread in the Mediterranean basin an innovative and propositive culture about the new role of Packaging and the other print applications in Communication.

The conference’s programme is the result of a joint effort of the associations which represent the entire printing chain. They started to work together in March 2016 and, on the 12/13 of September, will deliver a unique mix of contents:
-A two days event with Round Tables and market learders’ opinions
-A delegation of professionals from Europe 28, Israel, Egypt, Libya, Algeria, Morocco, Tunisia, Turkey, Iran
-An exclusive White Paper on “The Value of Print in the Customer Journey”

Over 250 professionals have already signed up for this event, which links all the printing and communication industry: vendors, printers, converters, designers, communication agencies and brand owners. You can participate free of charge in all sessions, or choose the moments you prefer between insights, keynote, and networking.

Tuesday, 12 September 2017, 14-17.30 h
Enzo Baglieri, Operations and Technology Professor at SDA Bocconi School of Management, leads the players of the paper, graphics and communication industry in a economy scenario which is changing from a product-centric mindset to a centric service one. The emphasis on services and the ability to integrate them with physical product portfolios change the rules of competition and make sectorial borders more permeable.

12 speakers from leading companies that need to communicate - including printers, advertising agencies and brand owners - compare their strategies to attract consumers in the store and convince them to buy. A result obtained with a multi-device and multi-channel approach, based on in-store engagement capabilities both through POPs or particularly attractive signage, and through the development of package-driven buying.

Tuesday, 12 September 2017, 17.30-22.00 h
He does not need any introduction. Oliviero Toscani, Italian photographer of international renown, is the creative force behind the world's most famous newspapers and brands, creator of corporate images and advertising campaigns.

Print4All Conference does not just mean listening to others, but also share. The evening at the Westin Palace's terrace in Milan will allow you to know panelists and keynote speakers, talk with customers and other attendees in the conference. Networking means find opportunities to grow your business.

Wednesday, 13 September, 9.30-13.00 h
If you have never heard him talking about communication, you cannot miss Paolo Iabichino, Chief Creative Officer Group Ogilvy & Mather Italia, and his ideas about contemporary BRANDING. From shape to content, how is the way people read and choose changing? What should be said and given to the consumers to receive their attention?

And after the purchase? Can you continue the dialogue with your consumers through the product they purchased? You have to engage in a common tale that rewards their loyalty to the brand. Once only paper-based, loyalty campaigns today are enriched with new digital tools to integrate for a coherent message.
(Associazione Nazionale dei Fornitori dell’Industria Grafica (ARGI) and ACIMGA)

Newsgrafik #117742
 15.08.2017

Anilox roller manufacturer showcases SteppedHex engraving and laser cleaning service  (Company news)

LabelExpo: Innovative anilox technologies from Zecher

Zecher anticipates an increase in visitors
At LabelExpo Europe, Zecher will be informing their trade visitors once again about the latest anilox technologies with the help of a team of experts at stand E54 in hall 4. Ms Anais Rath, responsible for Marketing at Zecher, sees LabelExpo as one of the most important trade fairs in Zecher’s event calendar: “Label printing is a rising market segment for us, in particular because packaging is increasingly being used as advertising space and thus high quality printing is required. We are responding to the increase in the number of customers this year with a larger exhibition stand and are already looking forward to beating our number of visitors from the last LabelExpo.”

The launch of advanced solutions
With the innovative SteppedHex engraving, Zecher is offering new opportunities for improved print performance and responding to the increased customer requirements. In addition, the anilox roller manufacturer will present laser cleaning as a new service in their portfolio. You can experience the performance of Zecher’s anilox rollers at Nilpeter’s stand 7B35/7B39 at LabelExpo where you can see their machine demonstrations.

Innovative SteppedHex engraving optimizes printing performance
Since the launch for all applications last year, the SteppedHex engraving from Zecher has already attracted a lot of interest. The tried-and-tested SteppedHex technology is based on an application of the parameters of 60° engraving, while offering an alternative to it and additional benefits.
- Increased resolution without loss of volume
- Improved emptying performance
- Uniform and homogeneous ink-transfer
- Suitable for all inking systems
- Opportunities for cost-saving

Laser cleaning gently eliminates all residues
Conventional procedures remove only part of the accumulated residues concerned. Zecher’s laser cleaning system from LaserEcoClean gently eliminates all ink and varnish residues. Mr. Jörg Rohde, Head of Applications Technology at Zecher GmbH, is convinced by this system’s cleaning performance: “After the cleaning process, the pick-up volume of the anilox roller can once again be used to its full extent, and printers benefit from the same uniform inking performance as before.” As a relatively low-power laser beam is used, the temperature of the ceramic surface is well below the material's melting point, which prevents any damages to the outside of the anilox roller.
(Zecher GmbH)

Newsgrafik #117743
 15.08.2017

Sappi to exhibit at Labelexpo Europe 2017  (Company news)

Sappi will present innovations in Release Liner and Label Papers product groups

As one of the world's leading providers of speciality papers for self-adhesive applications and packaging, Sappi has announced it will be participating in Labelexpo Europe 2017 from 25 to 28 September at the Brussels Expo site. The world's largest event on the label and packaging industry calendar provides the year's most important forum for Sappi to demonstrate its expertise in the field of silicone base papers and label papers. The primary focus of Sappi’s presence at the trade fair, under the theme "People, Paper, Possibilities", will be its innovations in the Release Liner and Label Papers product groups. These include the new CCK (Clay Coated Kraft) carrier paper Sappi Sol DNC as well as two new label papers in the form of Sappi Parade Face Stock C1S and Sappi Parade Face Stock Vellum. Sappi will be exhibiting in Hall 5, Stand E05.

Release Liners: silicone usage reduced even further
For more than 40 years, Sappi has been a market leader in the field of silicone-based papers. CCK papers under the Sappi Sol brand are undergoing continuous innovation. This ongoing development work is reflected in the improved surface structure of the new Sappi Sol DNC papers. This is because carrier papers with a smoother surface result in lower silicone consumption during the finishing process. This is why Sappi is constantly working to improve the surface quality of its silicone-based papers, resulting in ongoing improvements in the quality of its carrier papers. The most recent examples of this are the Sappi Sol DNC carrier papers with a satin finish. The use of a state-of-the-art calendar further reduces scratches on the paper and significantly improves the surface quality. This results in lower overall silicone consumption, a condition that is important to label converters.

Label Papers: New Face Stock qualities
With its Parade product range already well-established on the marketplace, Sappi offers a comprehensive range of wet glue label papers for a variety of processing options. At Labelexpo, Sappi will be presenting two new Face Stock label papers in the form of Parade Face Stock C1S and Parade Face Stock Vellum. They are approved for direct contact with food and conform to DIN EN 71 for toy safety. The range of applications for these self-adhesive label papers include decorative labels for tins, glass containers, single-use and multi-use bottles and stickers or price labels (such as those found in the fruit and vegetable aisle) and more. Thanks to their excellent surface properties, these label papers ensure a brilliant appearance and excellent print results. Single-side-coated Semi-Gloss-Paper Parade Face Stock C1S can be processed with all standard printing processes, while Parade Face Stock Vellum meets the requirements for a high quality result in thermal transfer printing. Parade Face Stock C1S is available in a weight of 80 g/m2, and Parade Face Stock Vellum in grammages of 70 and 80 g/m2. Both papers are also available in FSC-certified versions.
(Sappi Europe S.A.)

Newsgrafik #117746
 15.08.2017

Fibria reports record sales, EBITDA growth, deleveraging and lower cash cost in the second quarter  (Company news)

-Pulp sales volume was 1.534 million tons, an all-time record for the second quarter;
-Net revenue was R$2.775 billion in 2Q17, growing 34% from 1Q17;
-EBITDA came to R$1.071 billion, up 66% from 1Q17;
-Net Debt/EBITDA ratio fell to 3.75, marking the start of deleveraging;
-Production cash cost of R$660/ton, down 12% from 1Q17;
-Production of 1.330 million tons, increasing 11% from 1Q17;
-Capacity-expansion project at the Três Lagoas Unit reached 96% completion and 69% financial execution.

Fibria, a Brazilian company and the world’s leading producer of eucalyptus pulp from planted forests, posted net revenue of R$2.775 billion in the second quarter of 2017, representing growth of 34% on the first quarter of the year. Compared to the second quarter of 2016, net revenue grew by 16%.

The performance reflects the stronger pulp sales volume in the period, which set a new record for the second quarter of the year, of 1.534 million tons, or 17% higher than in the first quarter of the year. Other factors contributing to the result were the 12% increase in the average net price in U.S. dollar and the 2% appreciation in the average U.S. dollar/Brazilian real exchange rate in the quarter.

In the second quarter, Fibria produced 1.330 million tons of pulp, for growth of 11% sequentially and 3% year-over-year. Supported by operating efficiency gains, better results from cogeneration sales and lower consumption of chemicals and energetics, the company ended the second quarter with production cash cost of R$660 per ton, 12% lower than in the first quarter of the year.

“Conditions in the second quarter remained very positive for pulp producers. Demand strengthened in all regions, which, combined with the supply restrictions due to delays in the startup of new capacities and the unscheduled production shutdowns, resulted in low inventories and supported higher prices. Furthermore, Fibria’s exporter profile benefited from the stronger appreciation in the U.S. dollar. Internally, we remain focused on operational excellence and reducing our production cash cost,” said Fibria CEO Marcelo Castelli.

EBITDA (earnings before interest, taxes, depreciation and amortization) in the second quarter came to R$1.071 billion, advancing 66% from the first quarter of the year. Compared to the second quarter of 2016, EBITDA grew 16%. EBITDA margin in the quarter, excluding pulp sales from the contract with Klabin, stood at 45%, expanding 8 percentage points from 1Q17.

The second quarter of 2017 was marked by the start of Fibria’s deleveraging process. The leverage ratio (Net Debt/EBITDA) in U.S. dollar fell to 3.75 at the end of the second quarter, compared to 3.79 at the end of the first quarter.

“The lower leverage ratio shows an important reversal in trend. The ratio peaked in 1Q17, but we already have managed to begin deleveraging in this second quarter, even before the startup of the new plant, creating more value for shareholders. We also maintained a strong liquidity position, of R$8.060 billion, or US$2.436 billion, which, adding the financing facilities for the Horizonte 2 Project that haven’t even been tapped, is more than sufficient to conclude the capacity expansion project at the Três Lagoas Unit and means that we will not have to rollover debt until 2019. And that doesn’t take into account our cash generation capacity,” said Fibria’s Chief Financial and Investor Relations Officer, Guilherme Cavalcanti.

Since Fibria is an exporter by nature and has 66% of its debt pegged to the U.S. dollar, any depreciation in the Brazilian real benefits the company’s financial condition by increasing its free cash flow. On the other hand, local-currency depreciation generates a non-cash increase primarily in the balance of dollar-denominated debt when translated into Brazilian real. As a result, the stronger U.S. dollar in the quarter had a non-cash impact on the company’s net income, which ended the period with a non-cash net loss of R$259 million in the second quarter of 2017, compared to net income of R$329 million in the first quarter. Net income in the first six months of the year came to R$70 million.

Expansion of the Três Lagoas Unit – Horizonte 2 Project
At the end of the second quarter of 2017, construction on the Horizonte 2 Project reached 96% completion. As a result, Fibria is maintaining its scheduled startup date of early September for the new pulp production line at the Três Lagoas Unit in the state of Mato Grosso do Sul. With total investment of R$7.5 billion, the project’s financial execution reached 69% in the second quarter.

In the forestry area, the planting program to form the forests that will supply the new pulp production line in Mato Grosso do Sul remains on schedule. In the second quarter, the wood harvesting operations and formation of inventory for the commissioning of the new plant advanced ahead of schedule. Another highlight was the startup of the automated nursery, which is the world’s first for eucalyptus clones. In the industrial area, the second quarter was marked by the completion of assembly operations and the testing of equipment.

On the logistics front, construction continued to advance on the Intermodal Terminal in Aparecida do Taboado, Mato Grosso do Sul, from where the pulp produced by Fibria at the Três Lagoas Unit will be shipped by rail to the Port of Santos in São Paulo, from where it will be exported to the company’s international clients.
(Fibria Celulose S/A)

Newsgrafik #117749
 15.08.2017

EUROPAC INCREASES ITS NET PROFIT BY 54.6%  (Company news)

The Board of Directors of the Europac Group (Papeles y Cartones de Europa S.A.) has approved the results for the first half of 2017, which record net profit of 32.4 million euros, 54.6% up on the same period of 2016. Sales rose by 5.3% to 563.9 million euros, while consolidated EBITDA reached 72.1 million euros, a rise of 19.6%. Consolidated EBIT between January and June stood at 43.7 million euros, 21.8% up on the previous year.​

-Sales rose by 5.3% and consolidated EBITDA by 19,6% to 72,1 million euros
-10.8% increase in EBITDA of the Paper Division as a result of market prices, strong final demand and internal management improvement projects
-The latest paper price rise, which has not yet been fully implemented, will have full effect in the third quarter of the year
-Downturn by 62%in EBITDA of the Packaging Divisions as a result of the increase in the price of the raw material, offset by the rise in volume and cost reduction
-Improvement in packaging sales prices in the second half of the year as the rise in raw material prices are passed on to the market
-Reduction in net debt, which stands at 1.55 times EBITDA, and 80% fall in finance costs

These results, which include the non-recurring gain of 10 million euros from the sale of the packaging factory in Morocco, were achieved in a market context characterised by the increase in paper sales prices in response to strong final demand, which were weighed down by the volatility in the raw material price. The rise in the sales price of paper led in turn to an increase in the cost of the raw material for the Packaging Division.

The Group recorded a significant fall in finance costs of 80% compared with the first half of 2016 as a result of the improvement in financing conditions, financial asset management and the reduction in net debt, which at the end of June stood at 1.55 times EBITDA.

“Good end to the year”
José Miguel Isidro, executive chairman of Europac, highlights that “strong final demand will allow us to implement the latest announced sales price rises in paper and pass on to the market the rise in the packaging raw material. We therefore predict a good end to the year and we remain optimistic in a year in which we previously announced that we would record constant improvement and in which no further maintenance halts are expected”.

Performance of the business lines
The Paper Division recorded growth in sales of 7.3% and an increase in EBITDA of 10.8% to 59.5 million euros, with a margin of 16.5% thanks to the paper price rises in the context of an increase in the price of the raw material and the scheduled halts in the factories at Viana do Castelo (Portugal) and Rouen (Francia).

In the second half of the year, the Paper Division will continue working on improving its margin by means of operational and commercial optimisation projects, such as the geographical distribution of sales, the production mix, logistics costs and the reduction in specific consumption costs.

For its part, the Packaging Division recorded EBITDA of 3.3 million euros, 62% down on the first half of the previous year as a result of the increase in the price of the raw material. This was partially offset by an increase in the sales volume greater than that recorded by the market and the continuous cost reduction. In this context, the aim of the Packaging Division is to progressively pass on to the market the increase in raw material costs and to continue developing added value projects in order to recover margins.

Corporate transactions
In addition to the acquisition of the packaging factory in Lucena (Córdoba) and the waste management centre in Laguna de Duero (Valladolid), and the sale of the logistics operator at the port of Viana do Castelo, in June the Group sold the packaging factory in Tangier, in response to the worsening market conditions in Morocco and Europac’s desire to continue growing and strengthening its positioning in Spanish packaging and waste management markets without increasing its debt.
(Europac Papeles y Cartones de Europa S.A.)

Newsgrafik #117732
 14.08.2017

DS Smith First in Industry to Present BTC Test Machine for Displays ...  (Company news)

... Safe and Fast: Top Performance at Point of Sale

Picture: The testing machine, which is unique across the industry, allows DS Smith to examine displays with 2 to 5 shelves, as well as multi-part packaging, thus ensuring a perfect point-of-sale performance.

Be it during transport or on the retail sales floor - displays have to withstand a great deal of pressure. In order to be able to reliably anticipate the future loads already in the development phase, DS Smith has developed a BCT test machine for displays and multi-part packaging, which is the first across its industry, allowing nearly any type of construction to be tested for weak points or over-specifications. This means that cost and time-consuming transport and laboratory tests are reduced significantly for the customers. This not only shortens time to market, but also reduces the complexity of some display constructions many times over.

Displays are as different as the products they present in retail space. They vary in the thickness of the material, the number and inclination of the shelves, the weight and the type of assortment. Conventional BCT test methods for packaging meet their limits here. In order to be able to use empirical data to underpin the values gained by experience on the load-bearing capacity of the display components and to accelerate the test processes in total, DS Smith has developed a special testing machine for displays and multi-part packaging.

Designs with two to a maximum of five display levels can be tested, even if they vary in their base areas or are arranged with an inclination. The respective sensors on the individual arms of the device measure exactly where the increase in force is greatest, or the material or construction can no longer withstand the load. The machine can simulate the different loads in the case of mixed assortment, as well as the loads which the ready-made displays are exposed to during their transport to the retail space. “The testing device developed by us is unique in its kind in the industry,” stresses Tobias Häfner, Sales Director Consumer Packaging & Display at DS Smith. "This machine allows us to examine almost all common display variants on the market and ensure a consistently high and reproducible quality."

With this new test centre, DS Smith provides its customers with a real speed gain and thus reduces their time to market. "Laboratory tests in external institutions are not only costly, but also time-consuming," stresses Häfner. “Through the analyses, the branded goods manufacturers receive meaningful values about the stability of their displays already during the design and development process.” This not only allows them to limit their own tests to random samples later on, says the display and packaging strategist. At the same time, the simulations at the DS Smith test centre also significantly reduce the usual transport tests on the road. “Since we already know the exact crash value of each individual shelf in an early stage of display development, we can also eliminate unnecessary fillers, bars or supports within the structure.” This yields real efficiency benefits in the production, storage and assembly of the displays.

"In particular, the major brand manufacturers are looking for partners to help them optimise the entire product life cycle," says Häfner. "We deliver everything from a single source: from the first creative consultation to the design, development and testing of the displays and the production of small or large series."
(DS Smith Packaging Denmark A/S)

Newsgrafik #117735
 14.08.2017

Koenig & Bauer growing in the service business and in the packaging and digital printing markets  (Company news)

Picture: Autonomous printing – made by Koenig & Bauer: KBA-Sheetfed is setting new benchmarks in sheetfed printing with AutoRun and the Rapida LiveApp

- Good order intake of €602m
- Revenue of €539m down slightly on the previous year due to more deliveries in H2
- High order backlog of €621m
- EBIT of €16.3m
- Favourable customer response to new and enhanced solutions
- Guidance for 2017 confirmed: revenue of up to €1.25bn and an EBIT margin of around 6%

After a good start to the year in which Koenig & Bauer celebrates its 200th anniversary, the group is able to report favourable business performance in the second quarter of 2017. “The successful trade shows Print China in Beijing, interpack in Düsseldorf and METPACK in Essen contributed to a substantial year-on-year increase in order intake in packaging solutions for cardboard, metal decorating, marking and coding and glass and hollow container printing. Despite this growth and the expansion of service business, the order intake of €601.9m was slightly down on the previous year’s figure of €618.8m, which had been spurred by major security press orders,” explained CEO Claus Bolza-Schünemann. With group revenue dropping slightly to €538.9m compared with the previous year due to more deliveries in H2, the order backlog remained high at €620.5m.

EBIT came to €16.3m. “The previous year’s figure of €20.7m had been influenced by a strong catch-up effect in Q2 (€4.9m) from the execution of a large security press project and higher revenue,” said CFO Dr Mathias Dähn. The group net profit of €15.2m (2016: €17.2m) is equivalent to proportionate earnings per share of €0.93 (2016: €1.05).

“In addition to the continued expansion of service business, profitable growth will be particularly driven by our existing and new solutions for printing, finishing and postpress processing of packaging as well as our industrial digital printing applications,” explained Dr Mathias Dähn. Claus Bolza-Schünemann mentioned the strong customer interest in the newly developed CS MetalCan solution for printing two-piece beverage cans. Sales launch is to commence in 2018 following the completion of intensive field testing.

Group earnings boosted by the substantial increase in Sheetfed profit

Order intake in the Sheetfed segment grew by 12.2% to €326.3m thanks to increased service business and more orders for medium-format presses. The flatbed die-cutters for postprint processing of cardboard and corrugated also made a gratifying contribution to growth. Revenue rose by 5.5% from €291.7m in the previous year to €307.8m. The additional revenue with better margins and lower costs resulted in a substantial increase in segment profit to €12.1m (2016: €8.6m).

Solid order intake of €85.7m was achieved in the Digital & Web segment. With revenue declining to €68.3m (2016: €75.5m), the order backlog rose from €92.3m to €93.6m. The EBIT of –€ 2.8m (2016: –€2.7m) came under pressure from KBA-Flexotecnica, which contributed a figure of –€3.1m. Optimisation efforts at the Italian subsidiary target to speed up the growth course in the future market of flexible packaging. Without the flexo activities, Digital & Web posted a clear improvement in earnings.

Despite the growth in orders for packaging printing solutions, new business in the Special segment dropped to €216.3m, down from €269.5m in the previous year, in which major security press contracts had been received. At €189.2m, segment revenue fell short of the previous year (€222.9m) due to more deliveries in H2. EBIT came to €14.6m, translating into a gratifying margin of 7.7%. The previous year’s figure of €22.1m had been influenced by a high catch-up effect of €4.9m from a large security press project.

Increase in equity ratio to 32.6%
Despite the higher customer prepayments, cash flows from operating activities came to –€20m compared with the previous year’s figure of –€10.6m. In addition to higher inventories for the planned revenue growth in the second half of the year this was due to the increased receivables resulting from an accumulation of deliveries shortly before the end of the first half. Aside from higher capital spending, the free cash flow of –€65.5m was burdened by the first payment instalments of €32.4m for the external funding of a part of the pension provisions. With its funds of €127.5m, securities of €14.7m that can be liquidated at any time as well as the high cash and guarantee facilities, Koenig & Bauer has a stable funding base. The equity ratio rose relative to the slightly increased balance sheet total to 32.6% (end of 2016: 31.1%).

The group workforce increased by 158 over the previous year to 5,359 employees as of 30 June. In addition to targeted recruiting in the service business and for new applications for the packaging and digital printing markets, 71 employees joined the group through the acquisition of KBA-Iberica Die Cutters for the growing die-cutter market.

Guidance for 2017 confirmed
The order backlog of €620.5m at the end of the first half, expanding service business, steady demand in the packaging markets and promising customer projects in security and digital printing, the management board expects revenue growth to accelerate with a positive effect on earnings in the further course of the year. In the absence of any material deterioration in global economic and political conditions impacting its international business, group management expects to achieve organic growth of up to €1.25bn in group revenue and an EBIT margin of around 6% in 2017.
(Koenig & Bauer AG (KBA))

Newsgrafik #117737
 14.08.2017

The Navigator Company selects Voith XcelLine tissue machine for ...  (Company news)

... Cacia in Portugal

The Navigator Company continues its expansion in the tissue sector and signs a contract with Voith for the supply of a new XcelLine tissue machine. The production line is designed to sustainably produce high-quality tissue paper maximizing the usage of slush Eucalyptus pulp. The new tissue facility will be integrated in the existing Cacia site in Portugal, where the company operates one of the biggest pulp production plants in Europe.

The scope of supply includes the latest Voith technologies to minimize energy consumption and achieve maximum efficiency in short fiber usage. Above all, the NipcoFlex T shoe press was a key factor in choosing Voith. With this technology, the need for thermal energy can be substantially reduced. The tissue machine is designed for an operating speed of 2,000 m/min. and will annually produce 70,000 metric tons of high-quality toilet and towel paper from pulp with a working width of 5,600 mm. Start-up is scheduled for second half of 2018. With this new investment the total tissue production capacity of The Navigator Company will raise to 130,000 tons per year.

The new tissue production line will be equipped with further energy-efficient, operator friendly components and systems like the Pluralis refining technology, the MasterJet headbox, EvoDry T steel Yankee and the EcoHood T. A core part of the delivery will be the Papermaking 4.0 features including the innovative ComCore automation platform.
The Navigator Company is one of Europe’s leading producers of pulp and paper. It has a total paper capacity of 1.6 million tons per year, largely integrated with pulp production, and more than 3,000 employees. As part of its development plan for a new cycle of growth, the Navigator Company in 2015 acquired an established tissue manufacturer: AMS-BR Star Paper, S.A.
(Voith Paper GmbH & Co KG)

Newsgrafik #117748
 14.08.2017

Siegwerk to showcase best in class ink solutions and services at LABELEXPO EUROPE 2017  (Company news)

Siegwerk, one of the leading global providers of printing inks for packaging applications and labels, will exhibit at this year’s LABELEXPO EUROPE 2017, the world’s largest event for the label and package printing industry taking place in Brussels, Belgium, from September 25 to 28, 2017. By providing a combination of best-in-class ink performance, high product safety and continuous support and guidance, Siegwerk is making every effort to help its customers address upcoming trends and to meet their specific needs with cutting-edge ink solutions. Visitors to the trade show can get in touch with Siegwerk’s experts at Booth A17 in Hall 6 to learn more about its inks and services or to discuss label and package printing innovations and trends.

“It’s always our goal to provide customers with the best and most efficient solution and support for their individual situation. We are always ‘Focused on your needs’ and are exactly analyzing the requirements and needs every single customer has,” explains Michael Mueller-Samson, Head of BU Narrow Web EMEA at Siegwerk the motto for the show. “That’s why platforms like LABELEXPO are ideal touchpoints for us to share ideas and discuss newest challenges and requirements with our customers and other industry experts.” Siegwerk attaches great importance to open dialog with its customers. Understanding their needs is key to the company identifying trending topics and open issues that enable it to channel its R&D activities into the market segments of the future.

Different customers have different needs
Siegwerk knows about the differences between customers and therefore always aims to provide customized solutions meeting the specific circumstances and requirements to enable the customer’s achievement of greater levels of efficiency and safety. The company has already launched several innovative solutions that were developed to help customers keep track of future-focused industry trends. It offers for example a complete range of migration optimized inks, gloss and matte varnishes, as well as metallic inks for all printing processes that are BPA-free and meet the needs of food and other sensitive packaging applications. The company’s migration optimized inks specifically for UV printing rank among the best systems on the market today.

Best-in-class ink performance
“Our newest developed ink series for UV flexo printing is called Sicura Nutriflex PRO. It offers highly pigmented colors that are HD-certified while being suitable for all food and pharma-related applications,” explains Rolf Montag, Product Manager BU Narrow Web at Siegwerk. “Furthermore, our UV offset series Sicura Nutriboard 2 for paper and selected films as well as Sicura Nutriplast 2 for plastics are both excellent ink solutions for heavy-duty applications.“ Siegwerk will also showcase the latest developments of metallic inks and different OPVs of its Sicura Nutriflex LEDTec range, the first-ever migration optimized LED UV flexo series for food and pharma packaging launched on the market. “We also develop high quality inkjet inks for labels and are working on some for packaging applications too,” adds Rolf Montag. With Sicura Nutri Jet UV-Inkjet, Siegwerk provides a low migration inkjet ink series for food and pharma packaging that works with different inkjet printing head technologies and delivers the same CMYK color positioning as flexo inks. With Sicura Jet low-odor the company also adds the only non-CMR UV-inkjet inks that are designed for printing labels for household, hygiene and industrial packaging to its offering.

High product safety
With the latest launch of the low migration UV offset ink range Sicura Litho NutriEco, Siegwerk once again demonstrated its pioneering role in terms of product safety and sustainability. This innovative UV printing ink system was shortly awarded Gold status of the “Cradle to Cradle Material Health Certification” by the Environmental Protection Encouragement Agency (EPEA), which makes Siegwerk the first ink manufacturer offering a low migration UV ink range complying with the highest international environmental research-related product standards.

When formulating its inks, Siegwerk is not only looking for optimum performance based on customers’ processes but also to ensure that inks are safe to use for desired packaging applications. As a global leader in delivering product safety, Siegwerk supports its customers when safeguards against regulatory risks or product contamination are required.

Excellent services
Next to best-in-class ink performance and a high level of product safety the company also offers customers manifold services related to guidance and support, for example in terms of process optimization, complexity reduction and efficiency gains for printing shops. With its On-Site Consulting offering Siegwerk expands its services for customers to the improvement of the individual performance at the customers’ sites. For narrow web and sheetfed printing the company’s team focusses on ink room management as well as the conception and installation of dispensers, all with the goal to support customers in creating an optimal ink preparation including all necessary tools. Siegwerk’s experts analyze potential new investments and define with the individual customer which requirements a new dispenser would need to fulfill and identify necessary steps for the implementation or optimization of an ink room. A variety of trainings for example on colorimetry or ink organization complement the services offered. The trainings could be conducted at Siegwerk or at the customer’s venue however desired.

In line with its “Focused on your needs” motto, Siegwerk’s showcase at LABELEXPO EUROPE 2017 will be a touchpoint for discussions and conversations about current label and packaging print requirements and solutions as well as future trends. LABELEXPO visitors can obtain more information about Siegwerk’s range of products and services at Booth A17 in Hall 6 from September 25 to 28, 2017.
(Siegwerk Druckfarben AG & Co. KGaA)

Newsgrafik #117721
 11.08.2017

Stora Enso half-year report January–June 2017: Positive contribution from ...  (Company news)

... transformation projects accelerates

Sales of EUR 2 528 (EUR 2 526) million increased marginally despite the divestment of paper mills. Sales excluding the paper business increased 7.1%. Operational EBIT decreased from EUR 226 million to EUR 219 million. This was mainly due to the impact of higher maintenance costs of EUR 15 million compared to a year ago. The operational EBIT margin was 8.7% (8.9%).

Balance sheet strengthened further; net debt to operational EBITDA was 2.0 (2.2) despite a dividend payment. The ramp-up of Beihai Mill continues to proceed ahead of plan, and it is expected to reach operational EBITDA break-even in Q4/2017, one quarter earlier than previously forecast.
Varkaus kraftliner mill is expected to reach full production during the second half of 2017. A positive quarterly operational EBIT was achieved in Q2/2017.

Stora Enso signed an agreement to divest its holding in the equity accounted investment Bulleh Shah Packaging Ltd. to the main owner Packages Ltd.

Sales of EUR 5 025 million increased 1.1%. Sales excluding the paper business increased 8.3%. Operational EBIT of EUR 434 million decreased 8.4%, mainly due to increased maintenance costs.

Stora Enso's CEO Karl-Henrik Sundström comments on the second quarter 2017 results:
“Our transformation towards a renewable materials growth company accelerates, and I am confident in our progress. Sales increased marginally, and excluding the paper business sales increased 7.1%. This is primarily due to the ramp-up of strategic investments – the Beihai, Murów and Varkaus mills – and higher pulp and containerboard prices.

Operational EBIT decreased from EUR 226 million to EUR 219 million. This is mainly related to extensive maintenance and a change of maintenance calendar compared to last year, amounting to EUR 15 million. The balance sheet continued to strengthen further, net debt to operational EBITDA has gone from 3.2 to 2.0 during the last four years.

The positive contribution from the transformation projects continues. I am very pleased that we continue to be ahead of plan with the ramp-up of Beihai Mill. We expect the consumer board machine to reach operational EBITDA break-even in the fourth quarter 2017, which is one quarter earlier than previously forecast. We have also made good progress in the ramp-up of the Varkaus kraftliner mill. This quarter, we reached a positive operational EBIT.

During the period, Paper Machine 8 at Kvarnsveden Mill in Sweden was permanently shut down. Our restructuring plan for Kvarnsveden Mill is anticipated to result in annual cost savings of EUR 12 million.

In July, we announced exciting news: we will invest EUR 45 million in a new cross-laminated timber production unit at Gruvön sawmill in Sweden. This investment supports our strategy to grow in the construction industry and increase the use of wood as a building material. We are investing to meet growing customer demand globally, and expect this investment to generate annual sales of approximately EUR 50 million when run at full capacity. Over time, this investment will significantly enable the Wood Products division to exceed its profitability target.

Today, we announce that we have signed an agreement to divest our 35% holding in the minority investment Bulleh Shah Packaging Ltd. to the main owner Packages Ltd. Due to the changing business environment in Pakistan, the Bulleh Shah Packaging asset with its product mix and related future outlook is a non-strategic fit in our consumer board roadmap. Our focus is on high quality virgin-fibre products. We are committed to making a responsible divestment and intend to leave a positive contribution to the society.

As always, I would like to thank our customers for their business, our employees for their dedication, and our investors for their trust.”

Outlook
Q3/2017 sales are estimated to be similar to the amount of EUR 2 528 million recorded in the second quarter, and operational EBIT is expected to be somewhat or even clearly higher than the EUR 219 million recorded in Q2/2017. The operational EBIT estimate for Q3/2017 includes the negative EUR 17 million impact of the ramp-up of the Beihai operations. The impact of annual maintenance shutdowns is expected to be approximately EUR 10 million lower than in Q2/2017, and it is included in the above guidance.

The consumer board machine in Beihai is expected to reach operational EBITDA break-even in Q4/2017, one quarter earlier than previously forecast.
(Stora Enso Oyj)

Newsgrafik #117726
 11.08.2017

Smurfit Kappa Group plc today announced results for the 3 months and ...  (Company news)

... 6 months ending 30 June 2017

Second Quarter & Half Year Key Points
- Group revenue growth of 5% for the first six months with strong demand in most markets
- Second quarter EBITDA of €292 million with increased sequential EBITDA margin of 13.9%
- Kraftliner demand robust with additional €50 per tonne price increase implemented in the third quarter
- Containerboard price increases feeding through to corrugated price recovery
- Interim dividend increased by 5% to 23.1 cent per share

Tony Smurfit, Group CEO, commented:
“We are pleased to report a good set of results for the first half which were achieved against a backdrop of continued and unprecedented recovered fibre cost inflation of approximately €75 million year-on-year. We are in the process of recovering these input costs as we move through the remainder of 2017 and into 2018.

“The Group reported sequentially improved EBITDA margins at 13.9% with both Europe and the Americas delivering improvement as a result of corrugated price recovery.

“In the first half, global containerboard supply has been very tight, and remains so. As a result of our integrated system which gives security of supply in both kraftliner and testliner, SKG continues to meet its customers’ supply needs, a competitive strength valued by both local and multinational customers. Our business continues to attract new customers as a result of this changed dynamic. We maintain our focus on investing in our asset base both organically and through acquisition to ensure we have sufficient mill and conversion capacities to meet and exceed our customers’ requirements.

“In Europe we have seen a strong demand environment in the second quarter leading to a first half increase in absolute corrugated volumes of over 2.5% with growth of 5% for the second quarter on a days adjusted basis. In the Americas, the Group reported strong volume growth in Colombia, Mexico and Brazil while Argentina and Venezuela remained challenging.

“As a result of the containerboard price increases in the first half of the year, we began, in the second quarter, increasing corrugated prices in Europe and the Americas and these increases will be progressively implemented throughout the remainder of the year and into the first quarter of 2018. However, shortage of supply and unabated input cost pressures in both regions have necessitated further containerboard price increase announcements for implementation in the third quarter. This will require a further round of corrugated price increases in the fourth quarter and beyond.

“During the first half we completed investments of €177 million across our regions and expect to spend over €400 million by year end. SKG continues to develop and improve its operations across all its business areas. Growth and cost reduction investments allied with our track record of earnings enhancing acquisitions will continue to improve the prospects for the Group.

“While recovered fibre cost pressures present short-term challenges, SKG is better positioned today than at any other point in our recent history. Our capital structure, our asset base and our integrated business model continue to strengthen. This will enhance our ability to translate today’s market conditions into improved earnings in 2017 and beyond”.
(Smurfit Kappa Group Headquarters plc (Dublin Office))

Newsgrafik #117728
 11.08.2017

Metsä Board's comparable operating result in January–June 2017 was EUR 89 million  (Company news)

Half Year Financial Report 1 January–30 June 2017, 3 August 2017 at 12:00 noon

January–June 2017 (1–6/2016)
• Sales were EUR 918.7 million (858.5).
• Comparable operating result was EUR 88.7 million (70.8), or 9.7 per cent (8.2) of sales. Operating result was EUR 92.1 million (67.2).
• Comparable earnings per share were EUR 0.19 (0.14), and earnings per share were EUR 0.19 (0.13).
• Comparable return on capital employed was 10.3 per cent (8.4).

April–June 2017 (1–3/2017)
• Sales were EUR 474.2 million (444.5).
• Comparable operating result was EUR 43.5 million (45.2), or 9.2 per cent (10.2) of sales. Operating result was EUR 46.9 million (45.2).
• Comparable earnings per share were EUR 0.09 (0.10), and earnings per share were EUR 0.09 (0.10).
• Comparable return on capital employed was 10.3 per cent (10.6).

Events in April–June 2017
• Total paperboard deliveries grew by 11 per cent from the previous quarter. The average price of folding boxboard was burdened by the geographic sales mix of the Husum mill.
• The new extrusion coating line at Husum, Sweden, started up in April. The line serves the global food service markets, and its annual capacity is 100,000 tonnes.
• In May, Metsä Board renewed its key marketing messages, launched its new product and service portfolio, and harmonised the product names of paperboards.
• The company updated its long-term financial targets and decided on a new dividend policy, effective as of 1 June 2017.
• Metsä Board announced changes to its Corporate Management Team. As of 6 June 2017, Metsä Board’s Corporate Management Team consists of Mika Joukio (CEO), Jussi Noponen (CFO), Sari Pajari (SVP, Marketing and Sales), Harri Pihlajaniemi (SVP, Production, as of 6 September 2017 at the latest), Ari Kiviranta (SVP, Development) and Susanna Tainio (SVP, Human Resources).

Result guidance for July–September 2017
Metsä Board’s comparable operating result in the third quarter of 2017 is expected to improve slightly compared to the second quarter of 2017.

Metsä Board’s CEO Mika Joukio:
“Our paperboard deliveries were once again at a record high, and our market pulp operations developed positively in the second quarter of the year. We had several planned maintenance shutdowns in April–June at the Finnish mills, which we didn’t have during the first quarter. The market situation of fresh fibre linerboards was good, and the price level remained stable. The average price of our folding boxboard declined due to the geographic sales mix of the Husum mill. Global demand for high-quality fresh fibre paperboard is strong, particularly in the Americas, which is an important market area for us. I believe that North America’s share of our paperboard sales will grow clearly during the second half of the year.

At the beginning of June, we updated our long-term financial targets. One of these targets is to grow profitably, exceeding the market growth rate. In the first half of the year, Metsä Board’s paperboard deliveries grew by 18 per cent compared to the corresponding period last year. In addition to growth, we are focusing on improving profitability, more efficient use of capital, and growing shareholder value. We still have a lot of potential at Husum to improve the profitability of our paperboards by optimising the product and sales mix.

As part of our business development efforts, we renewed our key marketing messages, and unified our product and service portfolio. This strengthens Metsä Board’s market position as a company focused on premium paperboards. The ‘Better with Less’ concept reflects our desire to promote packaging solutions that create better consumer experiences with less environmental impact.”

Near-term outlook
Demand for high-quality consumer packaging paperboard made from fresh fibre is expected to continue to grow in market areas important for Metsä Board. The increases in capacity by European producers of folding boxboard have not had a negative effect on price development. Several producers of white fresh fibre linerboards have announced price increases in Europe and North America during the current year. Global demand and supply for long-fibre and short-fibre pulp is expected to remain stable.

Metsä Board’s paperboard deliveries grew strongly during the first half of the year. Delivery volumes in July–September are expected to remain roughly at the level of the second quarter. The company aims to improve the geographic sales mix of Husum’s folding boxboard and to increase the share of North American sales, in particular.

The shutdown of the Kemi integrated mill will take place in the third quarter of the year. The production costs of paperboards in July–September are expected to remain at the level of the previous quarter.

The start-up phase of Metsä Fibre’s new bioproduct mill is expected to have only a slight negative effect on Metsä Board’s result for July–September.
(Metsä Board Corporation)

Newsgrafik #117716
 10.08.2017

Nilpeter to premiere new flexo press at LabelExpo Europe 2017  (Company news)

Nilpeter is pulling out all the stops at LabelExpo Europe 2017, premiering the all new FA flexo press, the latest addition to their state-of-the-art flexo programme, and displaying one of their newly upgraded digital PANORAMA Hybrid presses.

The All New FA
The new FA is the most versatile flexo press on the market – designed to accommodate the printer’s ever-growing needs, and built around the modern press operator, with an intuitive user interface and fully mobile print controls.

The FA provides a maximum level of stability, the tightest register tolerance, and excellent printing results on multiple substrates. Based on Nilpeter’s Clean-Hand design approach, the FA ensures clean hands during press operation, with a minimum of hands-on press interaction; all data is saved, jobs are easily recalled, and the press will auto register.

Last but not least, the new FA allows printers to enhance the performance and capability of their press with Value-Adding Units as well as Application and Automation Packages, according to application needs and budget.

The PANORAMA Hybrid
In addition to the all new FA, Nilpeter is also bringing their newly upgraded PANORAMA Hybrid to the show. Since the launch of the PANORAMA digital product line at LabelExpo Europe 2015, the Danish press manufacturer has made major enhancements, including a re-design of the PANORAMA’s converting and flexo printing units, as well as updates of the press software.

The new digital PANORAMA Hybrid configurations cover a wide and varied spectrum of customer needs and requirements – from stand-alone, to all-round, and value-added hybrids.

See you there!
Nilpeter is looking forward to seeing you in Brussels from September 25 – 28, as always, in Hall 7 at stand nos 7B35 & 7B39.
(Nilpeter A/S)

Newsgrafik #117718
 10.08.2017

Driving the label industry agenda: FINAT and Labelexpo Europe  (Company news)

The flag bearers of the European label industry - the international label association FINAT and Labelexpo Europe founders Tarsus Ltd - are celebrating the 25th anniversary of their partnership this year at the biggest-ever Labelexpo show, taking place at the Brussels Expo, 25-28 September.

An industry initiative
At the heart of their present co-operation is the establishment of the Labelexpo Advisory Board (‘LAB’), composed of representatives from Labelexpo organisers Tarsus, FINAT board members, and show exhibitors. In an industry that is continually growing and changing, the LAB’s key mission has been, and continues to be, to expand the event’s profile to include all the ‘new technologies’ that now form part of the definition of a ‘label’; and to make both exhibiting and participation in the associated events programme a truly special experience. Their efforts, coupled with the first results of long-term investment by the event venue, will deliver improvements in logistics, facility management, and visitor convenience for this year’s show, which features an awe-inspiring total of 700-plus exhibitors from more than 40 countries around the world.

On-site events
The show itself is enhanced by a lively agenda of on-site workshops, seminars, and, of course, the presentation dinner at which this year’s Global Label Industry Awards will be presented.

FINAT will be welcoming members, as well as potential association members, to their stand, 11A31, for refreshments, and to preview the new base of advanced online features which the members-only website offers today, along with their strong year-round events programme. This includes a series of webinars; FINAT’s biennial Technical Seminar next March, updating members on the state of the art of self-adhesive technology along the supply chain; its major annual opinion-leading event for senior managers, the European Label Forum in June; and, for young managers in the label industry’s many and varied disciplines, the lively Young Managers Club Congress, taking place later in 2018.

European Digital Label Study
Labelexpo Europe will also be the launch platform for FINAT’s Digital Label Study, an authoritative report, commissioned from LPC – specialised in research, technical PR, and commercial due diligence within the printing and packaging industries - which will offer a critical analysis of the current digital label printing technology landscape in Europe, as well as identifying trends and future projections relevant to digital label print across different regions and sectors. The report is based on a survey conducted with more than 100 label companies across Europe, who were asked questions on topics ranging from the profitability of their digital presses; their most significant challenges associated with digital label production; and the opportunities they see for digital label printing in the near and longer-term future.

‘Young Talent’ initiative
FINAT will also present an update on the important topic of attracting ‘young talent’ to the labels and package printing industry. At the beginning of this year, FINAT launched an initiative, together with the German label association VskE and other national associations, with the objective of developing an industry campaign that can be instrumental in attracting the ‘next generation’ workforce for the label industry across Europe.

Recycling awareness
A special feature on FINAT’s stand will, once again, be the Recycling Desk, at which visitors can obtain information about the various recycling solutions for spent release liner, and where a special video will be launched to promote awareness among both users and manufacturers of labels concerning the necessity, and benefits of, secondary uses for spent liners.

Visions of (future) labelling
On display on the FINAT stand will be the winning entries in this year’s prestigious FINAT Label Competition. Not only are these labels the best in their class, but what is equally interesting are the stories behind their success. FINAT will present a series of video-recorded interviews with the winning companies in the main category groupings, to provide a source of inspiration for continuous improvement and innovation which will be rewarded in future editions of the competition.

The Label Academy
FINAT will also be encouraging participation in Tarsus’ growing Label Academy initiative – providing label and packaging industry technical training online in topic-specific modules, with the opportunity for students to acquire technical certification for each successfully completed module. Today, Label Academy certification is accepted around the world as a valuable, ‘industry standard’ qualification.

‘A must-attend event’
Comments FINAT Managing Director Jules Lejeune: ‘For all concerned in the label and product decoration value chain, from raw material supplier to brand owner and retailer, Labelexpo Europe 2017 is a must-attend event’.

FINAT would like to invite you to attend the press briefing at Labelexpo on 27 September at 14:15 at the press centre to give you more in-depth information about all the above matters and more!
(FINAT)

Newsgrafik #117727
 10.08.2017

Valmet's Half Year Financial Review January 1 - June 30, 2017: Orders ...  (Company news)

... received increased - profitability at the previous year's level

April-June 2017: Orders received more than doubled in the Paper business line

- Orders received increased to EUR 796 million (EUR 692 million).
-- Orders received increased in the Paper and Automation business lines, remained at the previous year's level in the Services business line and decreased in the Pulp and Energy business line.
-- Orders received increased in China and South America, remained at the previous year's level in Asia-Pacific and EMEA (Europe, Middle East and Africa), and decreased in North America.
- Net sales remained at the previous year's level at EUR 803 million (EUR 804 million).
-- Net sales increased in the Paper business line, remained at the previous year's level in the Automation and Services business lines, and decreased in the Pulp and Energy business line.
- Comparable earnings before interest, taxes and amortization (Comparable EBITA) were EUR 57 million (EUR 57 million) and the corresponding Comparable EBITA margin was 7.1 percent (7.1%).
- Earnings per share were EUR 0.22 (EUR 0.21).
- Items affecting comparability amounted to EUR -1 million (EUR -1 million).
- Cash flow provided by operating activities was EUR 31 million (EUR 33 million).

January-June 2017: Orders received increased more than 20 percent

- Orders received increased to EUR 1,802 million (EUR 1,495 million).
-- Orders received increased in the Paper, Automation and Services business lines and remained at the previous year's level in the Pulp and Energy business line.
-- Orders received increased in China, Asia-Pacific, North America and EMEA and decreased in South America.
- Net sales remained at the previous year's level at EUR 1,475 million (EUR 1,456 million).
-- Net sales increased in the Paper business line and remained at the previous year's level in the other business lines.
- Comparable earnings before interest, taxes and amortization (Comparable EBITA) were EUR 91 million (EUR 88 million), and the corresponding Comparable EBITA margin was 6.2 percent (6.1%).
- Earnings per share were EUR 0.34 (EUR 0.28).
- Items affecting comparability amounted to EUR 2 million (EUR -3 million).
- Cash flow provided by operating activities was EUR 125 million (EUR 36 million).

Valmet reiterates its guidance for 2017

Valmet reiterates its guidance presented on April 12, 2017, in which Valmet estimates that net sales in 2017 will increase in comparison with 2016 (EUR 2,926 million) and Comparable EBITA in 2017 will increase in comparison with 2016 (EUR 196 million).

Short-term outlook
General economic outlook
The mood in the global economy has brightened during the past year, with confidence indicators and industrial production increasing, and investment and trade improving in most economies. Global growth is projected to rise modestly from 3 percent in 2016 to just over 3.5 percent by 2018. However, financial stability risks persist and could affect the modest recovery. Geopolitical shocks and trade protectionism could catalyze snap-backs in asset prices and realize downside risks through a variety of channels. Current market expectations imply a rising divergence in short-term interest rates between the major advanced economies in the coming years. This creates risk of sharp exchange rate movements, or other instabilities in financial markets. (OECD Economic Outlook, June 7, 2017)

Short-term market outlook
Valmet reiterates the good short-term market outlook for services, energy, board and paper, and tissue, the satisfactory short-term market outlook for automation and the weak short-term market outlook for pulp.

President and CEO Pasi Laine: High customer activity continued and orders received increased
"The first six months of 2017 were characterized by high market activity, and since the beginning of the year, Valmet was able to increase its orders received over 20 percent. In the capital business, the tissue, board and paper, and energy markets have been active. Orders received in the Paper business line increased almost 90 percent during the first half of the year, while the orders in the Pulp and Energy business line remained at the previous year's level. In the stable business, orders received in the Automation business line increased 10 percent and the order growth in the Services business line was 7 percent.

Despite the success in orders, we need to continue to focus on improving profitability. Comparable EBITA margin in the second quarter remained at the previous year's level at 7.1 percent, and for the last 12 months we now stand at 6.8 percent. There is still some way to go to reach our long-term margin target of 8-10 percent. It is an ambitious target, but I strongly believe we can get there.

In June, we launched our new Industrial Internet offering. With our new offering of reliability and performance services, and by opening a Performance Center for each of our four customer industries, we are taking our Industrial Internet services to the next level. Valmet is the leading process technology, automation and services provider for the pulp, paper and energy industries globally, and our Industrial Internet applications and services are built on the experience and know-how we have gained from this unique offering over the years."
(Valmet Corporation)

Newsgrafik #117704
 09.08.2017

Metsä Board's comparable operating result in January–June 2017 was EUR 89 million  (Company news)

Half Year Financial Report 1 January–30 June 2017, 3 August 2017 at 12:00 noon

January–June 2017 (1–6/2016)
• Sales were EUR 918.7 million (858.5).
• Comparable operating result was EUR 88.7 million (70.8), or 9.7 per cent (8.2) of sales. Operating result was EUR 92.1 million (67.2).
• Comparable earnings per share were EUR 0.19 (0.14), and earnings per share were EUR 0.19 (0.13).
• Comparable return on capital employed was 10.3 per cent (8.4).

April–June 2017 (1–3/2017)
• Sales were EUR 474.2 million (444.5).
• Comparable operating result was EUR 43.5 million (45.2), or 9.2 per cent (10.2) of sales. Operating result was EUR 46.9 million (45.2).
• Comparable earnings per share were EUR 0.09 (0.10), and earnings per share were EUR 0.09 (0.10).
• Comparable return on capital employed was 10.3 per cent (10.6).

Events in April–June 2017
• Total paperboard deliveries grew by 11 per cent from the previous quarter. The average price of folding boxboard was burdened by the geographic sales mix of the Husum mill.
• The new extrusion coating line at Husum, Sweden, started up in April. The line serves the global food service markets, and its annual capacity is 100,000 tonnes.
• In May, Metsä Board renewed its key marketing messages, launched its new product and service portfolio, and harmonised the product names of paperboards.
• The company updated its long-term financial targets and decided on a new dividend policy, effective as of 1 June 2017.
• Metsä Board announced changes to its Corporate Management Team. As of 6 June 2017, Metsä Board’s Corporate Management Team consists of Mika Joukio (CEO), Jussi Noponen (CFO), Sari Pajari (SVP, Marketing and Sales), Harri Pihlajaniemi (SVP, Production, as of 6 September 2017 at the latest), Ari Kiviranta (SVP, Development) and Susanna Tainio (SVP, Human Resources).

Result guidance for July–September 2017
Metsä Board’s comparable operating result in the third quarter of 2017 is expected to improve slightly compared to the second quarter of 2017.

Metsä Board’s CEO Mika Joukio (photo):
“Our paperboard deliveries were once again at a record high, and our market pulp operations developed positively in the second quarter of the year. We had several planned maintenance shutdowns in April–June at the Finnish mills, which we didn’t have during the first quarter. The market situation of fresh fibre linerboards was good, and the price level remained stable. The average price of our folding boxboard declined due to the geographic sales mix of the Husum mill. Global demand for high-quality fresh fibre paperboard is strong, particularly in the Americas, which is an important market area for us. I believe that North America’s share of our paperboard sales will grow clearly during the second half of the year.

At the beginning of June, we updated our long-term financial targets. One of these targets is to grow profitably, exceeding the market growth rate. In the first half of the year, Metsä Board’s paperboard deliveries grew by 18 per cent compared to the corresponding period last year. In addition to growth, we are focusing on improving profitability, more efficient use of capital, and growing shareholder value. We still have a lot of potential at Husum to improve the profitability of our paperboards by optimising the product and sales mix.

As part of our business development efforts, we renewed our key marketing messages, and unified our product and service portfolio. This strengthens Metsä Board’s market position as a company focused on premium paperboards. The ‘Better with Less’ concept reflects our desire to promote packaging solutions that create better consumer experiences with less environmental impact.”

Near-term outlook
Demand for high-quality consumer packaging paperboard made from fresh fibre is expected to continue to grow in market areas important for Metsä Board. The increases in capacity by European producers of folding boxboard have not had a negative effect on price development. Several producers of white fresh fibre linerboards have announced price increases in Europe and North America during the current year. Global demand and supply for long-fibre and short-fibre pulp is expected to remain stable.

Metsä Board’s paperboard deliveries grew strongly during the first half of the year. Delivery volumes in July–September are expected to remain roughly at the level of the second quarter. The company aims to improve the geographic sales mix of Husum’s folding boxboard and to increase the share of North American sales, in particular.

The shutdown of the Kemi integrated mill will take place in the third quarter of the year. The production costs of paperboards in July–September are expected to remain at the level of the previous quarter.

The start-up phase of Metsä Fibre’s new bioproduct mill is expected to have only a slight negative effect on Metsä Board’s result for July–September.
(Metsä Board Corporation)

Newsgrafik #117705
 09.08.2017

Van Genechten Packaging: Sustainability's biggest challenge  (Company news)

Sustainability is a challenge that is high on every manufacturer’s agenda. It requires continuous effort, along with new, creative ways of thinking. But what is its biggest challenge?

Looking at your complete chain and calculating its overall impact
That is exactly how folding carton delivers benefits generated across your entire chain: from keeping your products safe and optimizing shelf-impact to protecting our precious oceans.


Growers agree with us.
No wonder we are seeing more enterprises making the switch to folding carton. Even in the area of Fruits & Vegetables, growers find that fresh produce deserves truly sustainable packaging. In folding carton they have discovered:
-true sustainability
-100% recyclable, renewable, transparent carbon footprint
-flexible, creative packaging
-give it any shape, size and function
-optimal protection and insulation
-as solid board and microflute
-100% food safety
-certified barrier properties
-impressive shelf impact
-powerful printing possibilities

The time is right. EU environmental regulations are becoming stricter. At the same time consumer concern with the impact of plastics in our oceans is reaching a tipping point.
(Van Genechten Packaging N.V.)

Newsgrafik #117706
 09.08.2017

Next milestone achieved in sustainability - EU Ecolabel available for all UPM graphic paper grades   (Company news)

Following its Biofore approach, UPM Paper ENA has reached the next significant milestone in the company's sustainability journey, as now all its mills produce papers that are awarded with the EU Ecolabel. The UPM Hürth paper mill completed the full range on June 5th, when its products received the EU Ecolabel certificate. The mill achieved the needed reduction in emissions by switching to more sustainable sources of energy.

"Being able to provide our customers with EU Ecolabel awarded products from all of our mills is a great achievement, which we can be proud of," says Päivi Rissanen, Sustainability Director, UPM Paper ENA. "The EU Ecolabel criteria covers all relevant environmental aspects and is a good proof of solid sustainability performance."

The EU Ecolabel covers the product's whole lifecycle, which makes it the broadest ecolabel available on the market. Showcasing the EU Ecolabel printed on a paper product is a reliable and widely recognized way for UPM customers to express their commitment to sustainability. UPM has had the most comprehensive offering of papers carrying the EU Ecolabel in the paper industry, with the recent addition further strengthening this position - the label is now available for over 200 UPM Paper ENA products.
(UPM Paper ENA (Europe & North America))

Newsgrafik #117708
 09.08.2017

Future-orientated investment: Installation of a film press at the MMK Eerbeek mill  (Company news)

Performing even better with state-of-the-art technology and thereby increase our competitive edge – this is an essential cornerstone of our corporate strategy. At our mill in Eerbeek, the Netherlands, we have invested in a new film press and therefore in quality improvement, performance and product development possibilities.

Achieving a lot with one step
The installation of a state-of-the-art film press pursued several goals: quality optimisation, process improvements, preservation of resources and extension possibilities of our product portfolio.

The new film press allows us to specifically impact the technical properties of the cartonboard by means of precisely adjustable application quantities of binder. Apart from the qualitative advantages of the cartonboard produced and the significant improvement of processing stability on the board machine, this is also a benefit to the environment: Thanks to the much higher solids content of the binder, the amount of water to be vaporised is reduced, which saves substantial amounts of energy. In addition, it is possible to apply film-forming substances on the cartonboard with special properties such as barriers. The conversions also resulted in a slight increase in productivity.

Efficient project management enabled the successful project implementation up to full operation
The installation of the main equipment was completed in less than two weeks, and the movements and drying groups were tested successfully. For the Eerbeek mill, the installation of the film press is only one of many projects that were conducted simultaneously, as for example the installation of a gas turbine and a 10 kV voltage distribution system, as well as the conversion of the rewinder.

The mill is already operating at full capacity. Further set-up and optimisation tasks are still ongoing, but we can safely state that this investment has strengthened the position of the Eerbeek mill in the European virgin fibre cartonboard market. The outstanding commitment of our MMK Eerbeek team made this ambitious conversion a success.
(Mayr-Melnhof Eerbeek B.V.)

Newsgrafik #117709
 09.08.2017

GLATFELTER REPORTS SECOND QUARTER 2017 RESULTS  (Company news)

Glatfelter (NYSE: GLT) reported a net loss of $5.7 million, or $0.13 per share for the second quarter of 2017 compared with net income of $2.0 million, or $0.04 per diluted share in the second quarter of 2016. On an adjusted earnings basis, the loss for the second quarter of 2017 was $2.6 million, or $0.06 per share compared with adjusted earnings of $2.8 million, or $0.06 per diluted share, for the same period a year ago. Adjusted earnings is a non-GAAP measure for which a reconciliation is provided within this release.

Consolidated net sales totaled $387.3 million and $406.4 million for the three months ended June 30, 2017 and 2016, respectively. In the Composite Fibers and Advanced Airlaid Materials business units, net sales increased by 1.4% and 4.9%, respectively, on a constant currency basis. Specialty Papers’ net sales declined 8.6% in the quarter-over-quarter comparison.

“We had solid growth in shipping volumes and improved performance in our engineered materials businesses during the quarter,” said Dante C. Parrini (photo), Chairman and Chief Executive Officer. “However, our overall results for the quarter were lower than expected due to continued weakness in Specialty Papers’ markets. Volumes in our Composite Fibers business strengthened, increasing 3% over last year’s second quarter and 4% year-to-date, driven by improved demand across most product lines and particularly wall cover products. While we are seeing steady growth in the Composite Fibers business, we remain focused on our cost optimization initiatives that are expected to deliver $10 million in cost savings in 2017. The Advanced Airlaid Materials business performed well delivering top-line growth and improved profitability, as operating income increased 11% over the prior-year quarter and 10% for the year. For the remainder of 2017, we expect continued growth in shipments and strong operating performance from our engineered materials businesses. We also look forward to the incremental growth expected from our new Fort Smith, Arkansas facility coming on-line later this year with commercial shipments beginning early 2018.”

Mr. Parrini continued, “The prolonged supply-demand imbalance in the broader uncoated free sheet market is continuing to put pressure on industry operating rates and selling prices and is driving the need to address excess capacity and our cost structure. Last week, we announced aggressive cost reduction actions including the shutdown of a paper machine at our Chillicothe, Ohio, facility, and headcount reductions of approximately 120 positions across the Specialty Papers business. We anticipate these actions will deliver approximately $9 million in annual profit improvement. While these are difficult decisions, we are committed to taking the steps necessary to maintain Specialty Papers’ competitiveness and position Glatfelter for long-term success.”

Outlook
Composite Fibers’ shipping volumes in the third quarter of 2017 are expected to be approximately 3% higher than the second quarter. Selling prices are expected to be in-line with the second quarter while raw material and energy prices are expected to be slightly higher. In addition, the Company expects this business unit to incur approximately $1 million of less market related downtime in the third quarter than the second quarter.

Advanced Airlaid Materials’ shipping volumes in the third quarter are expected to be approximately 2% higher than the second quarter. Selling prices and raw material and energy prices are expected to increase slightly compared with the second quarter.

Specialty Papers’ shipping volumes in the third quarter are expected to be approximately 5% higher than the second quarter of 2017. Selling prices are expected to decline slightly and raw material and energy prices are expected to be up slightly. In addition, the Company expects to incur $2 million to $3 million of less market related downtime in the third quarter than the second quarter. Specialty Papers will also benefit about $1 million from the cost reduction actions recently announced.

In connection with its cost reduction actions within Specialty Papers, the Company expects to record one-time charges of approximately $8 million to $9 million primarily during the third quarter, of which approximately $5 million to $6 million will be non-cash. In addition, costs associated with the Specialty Papers environmental compliance projects and Advanced Airlaid Materials capacity expansion are expected to be $1 million and $4 million, respectively.

Consolidated capital expenditures are expected to total between $130 million and $140 million for 2017 and approximate between $62 million and $72 million in 2018.

The effective tax rate on adjusted earnings is expected to be approximately 35% for the second half of 2017.
(Glatfelter Corporate Headquarters)

Newsgrafik #117711
 09.08.2017

New managing director at Baumüller  (Company news)

Reinhold Rückel (photo) takes responsibility for the commercial operations of the Baumüller Nürnberg GmbH

On July 1, 2017 Mr. Reinhold Rückel took over the position of the commercial director of the Baumüller Nürnberg GmbH and together with Mr. Andreas Baumüller is now managing the Baumüller Nürnberg GmbH. Furthermore, he will be acting as the Chief Financial Officer (CFO) for the Baumüller group.

„With Reinhold Rückel we recruited an experienced professional. I look forward to cooperating with him and wish him success for his new position“, Andreas Baumüller, CEO at Baumüller comments.
(Baumüller Nürnberg GmbH)

Newsgrafik #117691
 08.08.2017

2017 first half-year results - Bobst Group reports higher sales and more than doubled results ...  (Company news)

... compared to first half of 2016

-Sales up 7% compared to H1 2016.
-EBIT has improved to CHF 39.8 million from CHF 18.0 million in 2016.
-Net result was CHF 27.7 million compared with CHF 9.7 million in 2016.
-Order entries increased by 20% and backlog by 5% compared to previous year.

Bobst Group recorded a very good first half-year in 2017. Sales amounted to CHF 643.2 million for the first six months of 2017, compared to CHF 600.4 million in the previous year. The operating result (EBIT) increased by CHF 21.8 million to CHF 39.8 million. The net result reached CHF 27.7 million, up from CHF 9.7 million in the previous year. Order entries increased by 20% and the order backlog is 5% higher than in the previous year. Mouvent, our new start-up company, will become the digital printing competence center and solutions provider of BOBST, focusing on innovation, with the objective to gain new markets in this area.

During the first half of 2017, consolidated sales amounted to CHF 643.2 million, representing an increase of CHF 42.8 million, or +7.1%, compared with the same period in 2016. This evolution was mainly driven by an overall good level of activity in all three Business Units and a slow start of Business Unit Web-fed in 2016. Volume and price variances had a positive impact of CHF 48.9 million, or +8.1%. An improvement of CHF 1.3 million, or +0.2%, came from the acquisition of the German company Boxplan.

The unfavorable exchange rate evolution due to the conversion of foreign currencies for consolidation accounts for CHF 4.4 million, or -0.7%, and the transactional impact on sales volume from our Swiss operations accounts for CHF -3.0 million, or -0.5%.

The operating result (EBIT) reached CHF 39.8 million compared with CHF 18.0 million for the same period in 2016. The increase in the operating result (EBIT) is mainly due to the positive contribution from higher sales and a very good utilization of our industrial capacities.

All Business Units improved their operating results (EBIT) with higher sales. The biggest increase comes from Business Unit Sheet-fed, where we are benefitting from the transformation measures implemented in recent years, but also from Business Unit Services, which continues to improve its processes. Business Unit Web-fed continues to have a less favorable product mix and high pressure on margins.

Net result reached CHF 27.7 million, compared to CHF 9.7 million in 2016. The increase in net result is mainly due to higher operating result (EBIT).

Net cash reduced to CHF 7.6 million from CHF 51.3 million at the end of 2016. This is mainly due to temporarily higher inventories for machines to be invoiced in the second half of the year. The consolidated shareholders’ equity reached 32.5% of the total balance sheet, compared to 33.9% at the end of 2016.

BUSINESS ACTIVITY AND OUTLOOK BY BUSINESS UNIT
Business Unit Sheet-fed
Business activity in the first half-year of 2017 was strong and followed the positive trend of 2016, with solid performance in both the corrugated board and in folding carton industries. Total bookings for the first half year of 2017 were 30% better than the same period in 2016.

Demand is good in both mature and emerging markets which, compared to last year, are reporting increased business activity that is reflected in H1 order intakes. Encouraging results are coming from China, where orders of H1 2017 have more than doubled in volumes and value compared to the first half of 2016. This is mainly due to a more positive economic situation, while increased pressure on prices and margins for customers is driving them to invest in highly productive equipment and automation.

On average all business zones are reporting double-digit percentage booking improvements compared to the same period of last year. The only exceptions are Africa and Turkey, which are underperforming due to political and economic factors that are slowing down investments.

Sales in the first half of the year were 5% above the same period in 2016. The positive volume imbalance which historically has marked the second half of the year has now been decreasing since 2015.

Business Unit Web-fed
Business activity in flexible materials remained in line with the previous year, although sales for the first half of 2017 have been slightly higher than last year.

In the market there have been no significant changes compared to 2016. Our performance in mature countries remains in line with the volumes demanded. Emerging countries, including China, Russia and Brazil, remain at a very low level of activity. Exceptions are India and South-East Asia which show increased activities. Total bookings for the first half-year of 2017 were 2% lower than the same period in 2016.

Construction work for the new China production site and competence center in Changzhou started in May 2017 and will be completed by year end. This new infrastructure will allow BU Web-fed to increase its footprint in Asia, to better serve the local market.

Sales in the first half of the year were 18% above the same period in 2016. This is mainly due to a slow start in 2016. The sales distribution between the first and second halves of the year remains still quite unbalanced. A good level of order backlogs and the so far positive trend in the packaging industry will allow us to increase sales, compared to the previous year’s volumes in local currencies.

Business Unit Services
First half-year sales for the Business Unit Services were 5% above the same period in 2016. In European and North American markets the business volume increased, mainly through more contract business such as maintenance programs, machinery inspections and contracts for remote troubleshooting and monitoring. While Europe and North America grew by more than 10% compared to 2016, Greater China and India showed stagnation in service business. In Asia, after an acceptable sales level in 2016, the South-East Asia and Japan service business was slightly below 2016.

The Business Unit Services expects to see normal business development for the second half of 2017, if no major changes in the world economy or exchange rates occur.

The Business Unit Services will continue to increase in competencies to support the worldwide deployment of products. The focus for the remainder of 2017 will therefore be to ‘hire, train and retain’ service sales managers and service technicians, to further optimize the spare parts warehouse in Asia Pacific, and to continue to work on customer satisfaction.

OUTLOOK FOR THE SECOND HALF OF 2017
The Group expects to see continued good demand in Europe and North America. Asia should further improve but South America and Turkey will remain low due to their slow economies. The Group expects a very busy second half of 2017 in nearly all plants. At current exchange rates, and barring unforeseen circumstances, the Group is confident of achieving slightly higher full-year sales and a slightly higher operating result (EBIT) compared to 2016.

The mid- to long-term financial targets of at least 8% operating result (EBIT) and a minimum 15% return on capital employed (ROCE) remain unchanged.
(Bobst Group SA)

Newsgrafik #117692
 08.08.2017

Yazoo Enlarges Its Core Cutting Department with Additional Equipment  (Company news)

Yazoo Mills, an industry leader in production of 100% recycled paper tubes and cores, is pleased to announce their recent purchase of a brand new automatic recutting line. The new addition brings Yazoo to a total of 29 recutting lines, marking the company as having the largest core-cutting department in the United States for smooth, burr-free blade cut cores. With the increased growth from a variety of markets that Yazoo serves, the new recutter enables the company to respond to the increasing demand for paper cores at competitive pricing.

Yazoo is proud to continue reinvesting in their equipment to expand and offer more solutions for the tape, label, and converting industries. The new recutter is equipped with fully automated controls which allows operators to have more access and flexibility while increasing efficiency within production.
(Yazoo Mills Inc.)

News-Paginierung #2