American Forest & Paper Association Releases June 2020 Printing-Writing Monthly Report

UPM Biocomposites and Finnish Mysoda have collaborated to create a range of sparkling water makers made almost entirely out of renewable materials. Traditionally, small kitchen appliances are made out of fossil-based plastics, so this innovation takes the sustainability of this type of product to a completely new level by substantially reducing the carbon footprint of the product. The raw material used for the Mysoda sparkling water makers is UPM Formi EcoAce biocomposite, which is made of wood fibres and renewable based biopolymer (on a mass balance basis), derived from UPM BioVerno naphtha. The materials originate from sustainable forestry and are produced from wood and pulp processing side streams and residues. Therefore, the raw material does not compete with food production and does not increase harvesting. Although composed of natural fibres, the UPM Formi EcoAce has similar material properties as fossil-based plastics and similar moulding technics can be used with it. The look and feel bears some similarities with wood as the wood fibres contained within create a natural finish for the end product.

Net sales increased $6.7 million, or 18%, in the third quarter of 2017 compared to the second quarter of 2017. The increase in net sales principally reflects the continuing ramp-up of new business, which began to be produced and shipped late in the second quarter of 2017. Converted product net sales increased $7.2 million, with $6.9 million of the increase attributable to increased volume and $0.3 million due to an increase in the average selling price. Parent roll sales decreased $0.5 million, reflecting the utilization of increasing mill capacities to service new converted-product business. Cost of sales increased $5.5 million, or 15%. Standard cost of sales increased $4.2 million, or 15%, consistent with the change in sales. Major contributors to the remaining $1.3 million increase in cost of sales include: approximately $0.9 million of increased freight cost based on changes in customer and geographic distributions; approximately $1.0 million of increased material costs, principally for virgin fiber; approximately $1.2 million of increased overhead costs not yet covered by production and sales at the new Barnwell, South Carolina facility; and other factors such as inventory obsolescence resulting from changes in customers' product lines and certain manufacturing efficiency variances. Partially offsetting these noted changes in costs were: approximately $1.3 million of variances were capitalized that were directly attributable to preproduction test runs necessary to get Barnwell's new equipment ready for its intended use, and Pryor's absorption variance improved by approximately $0.6 million. Click Read More below for additional information.

Q2/2020 compared with Q2/2019 -Net sales decreased by 16.6% to EUR 621.5 million (745.1), mainly due lower delivery volumes -Comparable EBITDA decreased by 11.7% to EUR 74.0 million (83.8), representing 11.9% (11.2) of net sales, supported by variable and fixed costs reduction actions -Operating result of EUR 25.8 million (35.0). Q1-Q2/2020 compared with Q1-Q2/2019: -Net sales decreased by 10.9% to EUR 1,339.6 million (1,502.8), negatively impacted by price, product mix and volumes -Comparable EBITDA increased by 4.4% to EUR 165.7 million (158.8), representing 12.4% (10.6) of net sales, as lower variable costs more than offset lower selling prices and deliveries -Operating result of EUR 99.6 million (52.9), including a capital gain of EUR 32.0 million from the sale of the fine art paper business