Sappi: Restructuring costs cause loss

Sappi fell to a loss in its fourth quarter, hurt by restructuring charges and declining demand in its major markets, the paper maker said yesterday. The paper industry is struggling to recover from a slump caused by weak demand and over-capacity as consumers shift from the printed word to the electronic word. Sappi said the diluted headline loss a share totalled 8 US cents (R0.82) for the quarter to September, from a profit of 12c a year earlier. A full-year diluted headline loss a share of 6c compared with a profit of 9c last year. It said the loss was due to restructuring charges of $177 million related to cost-saving measures. The shares fell 1.2 percent to close at R29.40. – Reuters