Global Forest, Paper & Packaging Industry Survey - Financiera Rural

More documents

Recommendations

Info

PwC Top 100 — Results by country/regionFinancial performanceCompanies in Emerging Asia increased their sales to$14 billion in 2008, 19% higher than the $12 billion in2007. Net profits were $1.04 billion in 2008 comparedto $0.97 billion in 2007. While the results for EmergingAsia initially appear to be significantly better thanthose of peers in other regions, it should be notedthat Nine Dragons and Ballarpur both have June 30fiscal year-ends, while Lee & Man’s is March 31, 2008.Consequently, 2008 results for these companies do notreflect the adverse market conditions that occurred inthe second half of 2008.The performance of this group was dominated bythe six Chinese companies. Sales by the Chinesebased companies included in this group amounted to$8.0 billion, up by 31% from the $6.1 billion reportedin 2007, and representing 58% of the total sales ofthe group. The increase in sales was led by Lee &Man Paper and Nine Dragons Paper (both mainlycontainerboard) posting increases of 75% and 57%respectively. As a result, Lee & Man moved to the 74thplace on the PwC Top 100 list, up from 95th place,and Nine Dragons moved up to 52nd place on the list,up from 65th.Both Lee & Man and Nine Dragons have increasedcapacity, but due to market conditions, bothcompanies have revised further expansion plans inresponse to the downturn in the global economy.ROCE was 7.2% slightly down from 7.7% in 2007.Sino-Forest (mainly Chinese plantations investor andtrader) had the highest ROCE in the region at 12.7%followed by Lee & Man at 12.4%. They were the onlycompanies that achieved over 10% ROCE in 2008.Overall, ROCE of the six Chinese companies was 8.1%down from 10.4 % in 2007. Shandong Chenming wasthe only Chinese company that recognised a modestgrowth in its ROCE at 7.8% (2007: 6.3%), in additionto Ballarpur (India) and Hansol (Korea) at 8.6% (2007:8.3%), and 2.9% (2007: 1.2%) respectively. Thisimprovement is mainly due to higher production andsales volumes. Production efficiency was improved bycontinued closures of old capacity and the benefit ofnew, more efficient capacity coming on stream.
RussiaDue either to limited publicly available financialinformation or size there are no Russian companies inthe PwC Top 100 list and their financial results are notaddressed here.Despite the limited scale of Russian companies,the country has had a major impact on global FPPdevelopments. It possesses the world’s largest forestresources and had assumed primacy in recent yearsas the world’s largest exporter of unprocessed timber.As part of moves aimed at encouraging investmentin value added processing in Russia, the governmenthad introduced an escalating scale of export duties onunprocessed roundwood, with the largest increase dueto take effect in January 2009.In November 2008, the Russian government announcedthat the increases would be postponed by nine to twelvemonths. Companies in regions where Russian exportsform a large component of fibre supply have beenlooking to reduce their dependence on Russian sources;shipments to China, Finland, and Japan, all majorbuyers of Russian logs, declined substantially in 2008.Press reports indicate that rough timber exports overalldecreased by 54%, although the global economicslowdown may also have been a factor here.Finnish press reports in June 2009 quote Prime MinisterVladimir Putin as saying that Russia no longer plans tofurther raise duties on exported wood, but at the timeof finalising this report, official confirmation from theRussian government was outstanding.Other regionsOur PwC Top 100 includes companies from someregions not addressed in detail in this analysis,notably Australia and South Africa. Sales for theone Australian (PaperlinX) and two South Africancompanies (Sappi & Nampak) remained flat at$13.3 billion, compared to $12.9 billion in 2007. Netprofit dropped notably for the two South Africancompanies, declining from $241 million in 2007 to$72 million in 2008, primarily as a result of impairmentand restructuring charges.Table 9: Financial Summary Information by Country/Region(US $ millions)Company Name Sales Net Income ROCE Cash Flow Debt to Return on Return on(Loss) from Ops Equity Sales Equity2008 2007 Change 2008 2007 Change 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007$ $ % $ $ % % % $ $ % % % %EuropeFinland 44,428 43,684 1.7 (1,624) (189) 757.8 1.0 3.0 2,268 3,748 0.87 0.70 0.4 2.5 0.8 4.6Sweden 26,766 25,401 5.4 1,482 1,913 -22.6 4.8 5.4 2,191 2,902 0.78 0.40 5.0 6.9 6.9 7.7Other 56,983 52,578 8.4 (1,342) 1,573 -185.4 3.2 6.6 3,723 3,732 1.14 0.90 0.4 4.4 1.0 10.6Total Europe 128,177 121,663 5.4 (1,484) 3,297 -145.1 2.9 5.0 8,182 10,382 0.94 0.67 1.3 4.2 2.7 7.5US 104,041 100,221 3.8 (2,944) 5,608 -152.5 2.9 5.2 6,950 9,838 2.10 1.20 0.8 3.7 2.8 9.7Japan 50,088 42,382 18.2 597 764 -22.0 2.1 2.5 3,731 3,247 1.46 0.81 1.5 2.2 3.9 5.5Canada 29,883 27,482 8.7 (4,041) (889) 354.7 -5.0 0.0 502 537 1.90 1.15 -7.9 -2.4 -22.4 -5.1Emerging MarketsLatin America 17,814 16,930 5.2 (1,271) 3,779 -133.7 3.0 9.0 4,525 4,467 0.94 0.61 3.7 18.2 3.1 14.3Emerging Asia 13,840 11,604 19.3 1,041 968 7.0 7.2 7.7 2,026 1,482 0.97 0.68 7.4 8.2 11.0 12.7South Africa 6,904 6,421 7.5 72 241 -70.1 4.6 5.2 431 682 1.60 1.19 3.5 3.8 11.5 11.5Australia 6,387 6,551 -2.5 62 67 -7.5 3.0 5.0 80 120 0.47 0.65 0.3 1.0 1.5 5.0357,134 333,254 7.2 (7,968) 13,835 -157.6 2.4 4.9 26,427 30,755 1.30 0.90 0.9 4.1 1.9 8.0Source: PricewaterhouseCoopers LLP© 2009 PricewaterhouseCoopers LLP 23
Page 4 and 5: PricewaterhouseCoopers’ Global Fo
Page 6: PricewaterhouseCoopers’ Global Fo
Page 13: Return on capital employed (ROCE)Th
Page 20 and 21: PwC Top 100 — Results by country/
Page 28 and 29: Survey methodologyThe Pricewaterhou
Page 30 and 31: PricewaterhouseCoopers 22 nd Annual
Page 32 and 33: PricewaterhouseCoopers 22 nd Annual
Page 34 and 35: Publications from PricewaterhouseCo
Page 36: www.pwc.com/fppPricewaterhouseCoope

Global Forest, Paper & Packaging Industry Survey - Financiera Rural

Create successful ePaper yourself

Delete template?

Save as template?