During 2Q 09, Sappi Ltd.’s (Sappi) top-line fell y-o-y as a result of weak demand for paper and pulp around the world. The company has cut back its production in response, which will impact the top-line over the coming quarters. We remain concerned that the global economic downturn will continue to weigh on demand throughout the near-to-medium term. However, sales and EBITDA both came in well above our estimates during 2Q 09, which is encouraging....

The Sappi Ltd. (Sappi) ADR increased significantly on 23 March 2009, correcting from the recent decline. However, considering the weak demand for paper in the global market, the company decided to scale down its capex plans and concentrate on cost control. Therefore, we remain concerned over Sappi’s near-to-medium term growth prospects....

CLICK VIEW REPORT TO READ FREE REPORT

Sappi Ltd.’s (Sappi) ADR price has declined significantly since our 4Q and FY 2008 update report, dated 16 December 2008. This decline partly reflects a broad-based sell-off in US markets over the same period. Meanwhile, the company reported weak 1Q 09 results and is suffering from weak demand for paper around the world. Considering this, we remain concerned about Sappi’s near-tomedium term…