Suzano Reports 3Q17 Results

In the third quarter of 2017, the pulp industry continued to present strong and healthy demand. The commodity’s positive fundamentals once again supported successive price increases in all regions. Cash generation from pulp sales came to R$ 809/ton and sales volume was affected by the longer downtime at the Imperatriz Unit for completing the unit’s debottlenecking project. The downtime also affected the cash cost of pulp production in 3Q17, but the downward trend of the last 12 months remains in place for reaching the optimal structural cash cost.

In the paper segment, despite the more challenging scenario in Brazil, we were able to keep sales volume stable in relation to 3Q16 given our flexibility for redirecting products between the domestic and international markets. Cash generation recovered in the quarter to reach R$ 756/ton.

The increase in the Company’s cost and expense structure has lagged inflation due to productivity gains and the focus on cost discipline.

Our commitment to financial discipline is reinforced by the reductions in both gross and net debt, as well as by significant lengthening of our amortization profile (from 62 to 80 months). The leverage ratio remains at a healthy level (2.3x Net Debt/Adjusted EBITDA) and the total average debt cost remains competitive (4.4% p.a. in USD).

The Adjusted EBITDA² of R$1.041/ton and strong Cash Generation¹ of R$795/ton were other metrics in which we outperformed the overall industry. The ROIC of 13.0% reflects the positive impact from pulp prices, as well as from cost and expense discipline and the margin recovery in the paper segment.

We further expanded Suzano’s product portfolio with the launch, in September, of the production and sales of tissue jumbo rolls at the Mucuri Unit. In the fourth quarter, we will launch, on time and on budget, production at the Imperatriz Unit.
more detail at:  http://ir.suzano.com.br/enu/6608/Earnings%20Release%203Q17_VF.pdf

Related Posts

Australia’s white paper industry is dead, leaving rural communities to pick through the pulp (theguardian.com)

The last remaining manufacturer Opal will cease production of Reflex at the Maryvale mill, with up to 200 jobs in doubt. The M5 occupies a shed nearly half a kilometre long, turning forest pulp into tonnes of Reflex white copy paper daily. Last financial year it produced 116,000 tonnes of copy paper for the domestic market, plus 88,000 tonnes for export. In December it was switched off indefinitely. Workers signed the final roll with “last one” and “RIP M5”. The mill produced its last ream of copy paper in January. On Tuesday Reflex’s manufacturer, Opal, announced it would close the M5 and cease Reflex paper production permanently. Its packaging lines of brown kraft paper and paperboard will continue.

Euro-Graph Reports Monthly Statistics of the European Graphic Papers Industry

Total European shipments of graphic papers in May were down 9.1% vs. 2021 and are down 9.0% year-to-date. Total European shipments of newsprint in May were down 7.6% vs. 2021 and are down 6.4% year-to-date. Total European shipments of sc-magazine in May were down 8.0% vs. 2021 and are down 9.3% year-to-date. Total European shipments of coated mechanical reels in May were down 22.0% vs. 2021 and are down 19.4% year-to-date. Total European shipments of uncoated mechanical (improved & others) in May were down 10.6% vs. 2021 and are down 10.2% year-to-date. Total European shipments of coated woodfree in May were UP 3.6% vs. 2021 and are UP 2.6% year-to-date. Total European shipments of uncoated woodfree in May were down 9.9% vs. 2021 and are down 11.2% year-to-date.

Announcing Envi 96 Label From Monadnock

Envi 96 Label is a high performance, brilliant white, Forest Stewardship Council Certified, wet strength label stock ideal for beverage and other consumer packaged goods labeling applications. Envi 96 Label is engineered to withstand the rigors of print and post-press processes, through the bottling line, onto the shelf or cooler, and finally into an ice bucket. Envi 96 is suitable for embossing, foil stamping and intricate die cutting and the brilliant white surface will make labels pop on a crowded store shelf. Click Read More below for additional information.
Back To Top
×Close search
Search