Asia Pulp profit drops

Asia Pulp profit drops

SINGAPORE (Dow Jones): Singapore-based Asia Pulp & Paper Co. (APP) said Thursday net profit dropped 34 percent to US$142.9 million for the year ended Dec. 31 from $216.4 million in 1997.

APP Chief Financial Officer Hendrik Tee said, "1998 continued to be a difficult year for the global forest products industry with average prices showing sharp decreases in almost all product segments."

Compared with 1997, average selling prices for pulp was down by 12 percent, for paper by 16 percent and for packaging products by 6 percent, he said.

The New York-listed group, which in has headquarters in Singapore and most of its plants in Indonesia, reported 1998 sales rose 19 percent to US$2.39 billion, while pretax profit fell 17 percent to US$427.2 million.