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This article reports on the retail market for disposable paper products in France, Germany, Italy, Spain and the United Kingdom from 1994 to 1998. Company profiles are included.

If this is the bottom of the cycle, then Juha Niemela is happy with his company's performance. But that could yet prove to be a big 'if' The fact that [...]

The forest product and paper industries are facing difficult market conditions in the late 1990s and lumber and several major paper grade prices have declined in 1998 from 10% to as much as 30%. The elimination of excess supply and capacity is a major problem for the industry, but the trend toward consolidation may alleviate the situation. These stocks are expected to lag or mirror the market in 1999.

Excess global capacity and sluggish demand have created earnings pressure for the paper and forest products industry in mid-1998, and the stronger dollar has allowed cheaper paper to be imported into the US. Lower paper and lumber prices are among the reasons the industry needs to consolidate, but newsprint prices are firm as of Sep 1998. These stocks are expected to lag the market in 1998 and 1999.

Prices for newsprint posted gains for most of 1997, but prices for other paper grades were depressed by the economic turmoil in Asia, and the prices for export logs and lumber have been hit hard as well. Work stoppages and consolidation are two factors which will have impacts on the paper and forest products industries, as well. Investors need to consider risks before committing funds as these stocks are susceptible to downturns.

Prices for most grades of paper remain depressed in 1998 due to increased capacity in most markets, but the price for newsprint gained for most of 1997. Increased wood supplies in 1997 also offset the strong demand for the product. Expiring labor contracts in the Canadian newsprint industry and paper industry consolidation will also have effects. These stocks are not timely for 1998 and investors should look to other industries.

Viewed as a speculative and complicated financial instrument, derivatives may help paper industry firms and their customers reduce risk and improve earnings When most people hear the word 'derivatives,' they [...]

Strong gains were made for newsprint prices in 1997 after hitting $500-a-ton in 1997, but capacity increases in foreign and domestic markets have made it likely for prices of other grades to remain low. Supplies of wood products have remained high, not offsetting the demand from construction, and several paper companies are consolidating. Risks inherent in the industry must be considered by investors before making commitments.

Paper companies which focused on particular market segments and invested in long-term execution-based projects increased their shareholder value between 1986-1996 according to an Andersen Consulting study. Paper companies which concentrated their investments in a few market segments had lower overhead costs. Paper companies' ability to boost their shareholder value depends on the market segment diversity and not on the market segments in which they operate., When it comes to creating shareholder value -- generating stock appreciation and dividend payments -- there have been some clear winners, and 'losers' in the forest products industry. According to [...]

The pulp and paper industry requires capital investments double the average of most US manufacturing industries. The pulp and paper industry also has the lowest shareholder return of any industry. As a result, third-party, non-recourse financing has several benefits for the industry. The major benefit is that this type of financing does not affect the balance sheet of the host company., Editor's Note: In the December 1996 issue, Pulp & Paper published an article by Daniel J Cenatempo of Jacobs-Sirrine on project financing ('Project Financing Offers Investment Option with Low Borrower [...]

PPI's annual survey of the world's Top 150 P&P companies shows a record-breaking year as the industry piled on the profits and earnings soared What a year that was. No [...]

The number of deinked or recycled mills developers that are turning to tax-exempt revenue bonds to finance their facilities has increased. These recovered paper mills, which are usually deinked market pulp mills using a variety of grades of office waste or linerboard mini-mills using mixed office waste, DLK and OCC, are becoming increasingly dependent on institutional financing. While such nonrecourse financing allows for low-cost option, it also forces the developer to show investment stability., Why are developers of recovered paper mills talking to institutional investors regarding financing of their proposed facilities? In recent years, there has been an increased number of recycled or deinked [...]

The published capital costs of bleached-kraft market-pulp mills and of newsprint mills for the US and Canada for a period of two decades was reviewed to evaluate how costs have changed over the years. The years covered were from 1972 to 1993. Based on analysis of data, inflation was the main factor that drove the growth of current capital costs. The increase in real cost of greenfield mills was between 0.1% and 3.3% per year for bleached-kraft market-pulp while no real increase in costs were recorded for major mill expansions.

FINANCIAL people and top management often look at maintenance as a cost, and a cost that is always too high. They frequently believe that the results of good maintenance are [...]

FIRST, THE GOOD NEWS: The world's Top 150 pulp and papermakers appear to be emerging from the recessionary storm. After three successive years of falling profits, the net earnings of [...]

Innovations in global debt, equity and derivative products provide corporations means for raising capital in almost any market throughout the world. Methods specific companies have used to raise capital in various markets is discussed.

Part 2 of PPI's 1994 preview focuses on North America, Asia, Africa and Latin America, where most producers are expecting a year of consolidation. Canada Improved performance spurs producers to [...]

The paper and forest products industry may not be a good investment currently since the industry faces lower prices and higher costs for its products. Production capacity for the paper and paperboard section is declining from a 1991-1993 growth rate of 2.2% to a 1994 rate of 1.9%. Environmental laws restricting sales of federal and state timber sales have cut supplies. However, long-term investors may find paper and forest product companies' stocks a good three- to five-year investment.

Capital investment in the US and Canadian paper industries is predicted to be slow as decreased spending continues to dominate the market. Capital outlays for environmental improvement programs decreased in 1993 but are predicted to improve in the later part of 1994. Meanwhile, companies are looking into the use of recycled fiber and recycling capacity in the US is expected to reach a 7% annual rate. Canadian mills intend to spend C$7 billion from 1993-95 while the US outlays from $3 to $4.3 billion for projects over a two year period., Spending plans are down for the fourth year in a row, as a strong recovery continues to elude the industry BUSINESS CONDITIONS REMAINED EXTREMELY tough in 1993, especially for Canadian [...]

The next 12 monts will be a time to improve profitability and heal the wounds of recession, but a big upturn in fortunes could take a while. LAST YEAR WAS [...]

The world's forest-products companies are good at making paper, but when it comes to finances, most could do better. THE SLOWDOWN IN THE world economy has proved more persistent than [...]

The paper and pulp industry has suffered reduced profit margins in 1993, inhibiting chemical suppliers from pushing through price increases for their products. The slow economic recovery, combined with reduced exports because of the poor economy in Europe, has some paper makers running at a loss, and several companies have shutdown their plants. Pressure to eliminate the use of chlorine in paper manufacture and increase recycled fiber content is adding to the difficulties faced by paper and chemical producers.

US and Canadian pulp and paper firms did not perform well in 1992, leading to a decline in capital spending plans. These companies are also expected to allot more for environmentally-related projects because of more stringent state, provincial and federal laws. There will be an increase output of recycled fiber products which will partially compensate for the effects of the recession. US pulp and paper companies will invest $13.4 billion on mill modernization between 1992 and 1994 while Canadian firms plan to allot 8.8 billion Canadian dollars within the same period., Spending plans are down for the third straight year, but the trend has leveled off and should turn positive as the recovery progresses Pulp and paper companies in the U.S. [...]

Financial support for special-purpose industrial facilities may be obtained through the support of third-party contracts. Such loans need credit verification because it is based on strong contracts and agreements that limit costs and variability of expenses and provides a stable market for its products. Third-party documentation will determine whether the company is a good risk or not.

There is not much pleasure in being proved right when the subject of the prophecy is so thoroughly negative. In last year's top 150 listing we reported still-rising sales but [...]