Our performance in 2009 - Sappi

44 Chief financial officer’s report continued
2009 2008 2009 2008
EUR million EUR per ton
Variable manufacturing costs
Wood 136 125 46 49
Energy 250 185 85 73
Pulp 301 317 102 125
Chemicals 369 340 125 134
Other 116 96 39 37
Delivery costs 158 141 53 55
Total 1,330 1,204 450 473
Variable costs per ton declined by 5% to r450 per ton compared to r473 per ton in 2008. This
reduction was due to reduced global commodity prices – in particular market pulp of which we
bought in approximately 0.9 million tons – the realisation of cost synergies from the acquisition
and cost reductions through process as well as product re-engineering initiatives.
2009
EUR million
2008
Fixed costs
Personnel 418 316
Maintenance 82 61
Depreciation 153 118
Services and administration 118 78
Total 771 573
Fixed costs increased by r198 million compared to fiscal 2008, this increase was mainly due to
the acquisition.
Our European business is highly sensitive to changes in selling prices, variable costs and volume
as is more fully described in the section ‘Major sensitivities’ further on in this report.
Special items in 2009 include a r55 million impairment of the coated mechanical business unit
to take account of the weak market conditions. Special items in 2008 of r79 million related mainly
to the charges taken upon closure of the Blackburn Mill and the cessation of production at
Maastricht Mill’s Paper Machine No 5.
Sappi Fine Paper North America
2009 2008 2009 2008
Sales volume (metric tons ’000) 1,274 1,553
US$ million US$ per ton
Sales
Variable manufacturing and
1,295 1,664 1,016 1,071
delivery costs (812) (1,056) (637) (680)
Contribution 483 608 379 391
Fixed costs
Sundry (costs) income and
(475) (543) (373) (350)
consolidation entries
Operating (loss) profit
(10) 30 (8) 20
excluding special items (2) 95 (2) 61
Special items – gains (losses) 55 (3)
Operating profit 53 92