Paper producer's loss set to turn around<\/p>\n
SINGAPORE (AFP): Pulp and paper producer Asia Pacific
\nResources International Holdings Ltd. (APRIL) yesterday forecast
\nimproving market conditions after reporting a third-quarter loss.<\/p>\n
APRIL, with its corporate offices in Singapore, said it had
\ntaken a net loss of US$8.84 million in the three months to
\nSeptember, compared with a profit of $15.2 million in the same
\nperiod of 1995.<\/p>\n
The Indonesian-owned group blamed the loss on a slump in world
\nprices of pulp and rayon fibre besides higher interest charges.
\nNet sales in the third quarter fell to $92.8 million, a 32-
\npercent year-on-year drop.<\/p>\n
A company spokeswoman said the loss was due to rising pulp
\ninventories in the paper market that was not specific to the
\nfirm.<\/p>\n
Last year, the company benefited from strong pulp and paper
\nprices which have retreated this year with leading mills stepping
\nup production.<\/p>\n
APRIL's losses for January-September mounted to $55.9 million,
\ncompared to a net profit of $36.4 million in the first nine
\nmonths of 1995.<\/p>\n
\"Notwithstanding the above, the downward trend of the pulp
\ncycle seems to have bottomed,\" the New-York listed company said
\nin a statement.<\/p>\n
Berry Kwock, APRIL's group finance director, said:
\n\"Benefiting from the inventory corrections seen during the end of
\nthe second quarter, the third quarter showed a marked improvement
\nin realized pulp prices over the previous quarter.<\/p>\n
\"We believe this price trend improvement will continue into
\nnext year, except that in the short interim period, price
\nfluctuations related to inventory corrections are anticipated.\"<\/p>\n
The average realized blended pulp price was $446 a ton during
\nthe third quarter, down from $835 in the same period of 1995. The
\naverage realized price of rayon fibre declined to $1,701 from
\n$2,191.<\/p>\n
Pulp prices<\/p>\n
Pulp prices, however, improved from $359 a ton in the second
\nquarter while rayon fibre prices have now stabilized.<\/p>\n
APRIL, which exports its products mainly to Asia Pacific
\nmarkets, controls two major companies in Indonesia, with a 61.3-
\npercent ownership of P.T. Inti Indorayon Utama and a 98.9-percent
\nstake in P.T. Riau Andalan Pulp and Paper.<\/p>\n
Its major markets include South Korea, Japan, China, Taiwan,
\nVietnam, Hong Kong, Thailand, Malaysia and Singapore. It also
\nexports to Europe and America.<\/p>\n
The company is studying the feasibility of increasing the
\nproduction capacity of its Riau pulp mill, expanding its Riau
\npaper mill and is engaged in the construction of paper and
\npaperboard mills in China at a cost of 500 million dollars.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/paper-producers-loss-set-to-turn-around-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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