PwC Releases 3Q 2015 Net Earnings Summary of Global Forest, Paper & Packing Companies

Third quarter net earnings for Brazil's Fibria and Suzano were significantly impacted by a 12.9% depreciation of the Real against the US Dollar during the quarter.

Dec. 1, 2015 - PwC has released its Net Earnings Summary Q3 2015 for the Forest, Paper & Packaging sector. The Summary indicates a slowdown of emerging economies in Asia and China are negatively impacting Japan, while depreciation of the Brazilian Real impacts Brazilian pulp and paper producers.

Japan
Six of the largest forest and paper companies in Japan posted net earnings of US $177.5 million in the third quarter of 2015, compared to earnings of US $367.4 million in the second quarter of 2015 and earnings of US $514.2 million in the third quarter of 2014. The slowdown in the emerging economies in Asia, including China, have negatively impacted the overall sales of products from the Japan based forest and paper companies. However, a 14.6% depreciation of the Yen relative to the US dollar and lower oil prices have somewhat buoyed earnings for the Quarter.

Brazil
Brazilian based pulp and paper producers Suzano and Fibria Celulose reported net losses of US$272.0 million and US$170.4 million respectively, down from earnings of US$148.4 million and US $ 199.9 million in the second quarter of 2015. Once again, third quarter net earnings for both Fibria and Suzano were significantly impacted by a 12.9% depreciation of the Real against the US Dollar during the quarter. The depreciation of the Real resulted in higher sales revenues from US Dollar denominated pulp, however this was outweighed by the quarterly mark to market adjustments of US dollar denominated debt for both companies.

United States
Nine of the largest US-based forest and paper companies reported net earnings of US $1.31 billion in the third quarter of 2015, up from earnings of US $519.8 million in the second quarter of 2015, but down from earnings of $2.79 billion in the third quarter of 2014.

Canada
Third quarter 2015 net earnings reported by the major Canadian forest products companies were mixed. Western Canadian based companies reporting overall higher net earnings compared to the second quarter of 2015, but lower than the third quarter of 2014. Eastern Canadian based companies overall third quarter net losses were slightly greater than the second quarter of 2015, but a significant improvement compared to the third quarter of 2014.

Western Canada
Western Canadian based companies posted net earnings of $52.3 million in the third quarter of 2015, compared to net earnings of $18.1 million in the second quarter of 2015 and net earnings of $206.3 million in the third quarter of 2014.

Eastern Canada
Eastern Canadian based companies posted net losses of $29.7 million in the quarter, compared to net losses of $25.2 million in the second quarter of 2015 and losses of $193.9 million in the third quarter of 2014.

Europe
Ten of the largest European based forest and paper companies reported net earnings of EUR 813.9 million for the third quarter of 2015, up from EUR 751.0 million in the second quarter of 2015, but down from EUR 922.2 million reported in the third quarter of 2014.

Download the full summary to learn more details as well as results for the rest of the globe: Global Forest and Paper Industry: Net Earnings Summary – Three months ended September 30, 2015 (81k, 2-page pdf)

SOURCE: PwC