South African paper maker Sappi Limited (SPP) says it will boost its profitable chemical cellulose output after the firm realizes a loss in FQ4. The sharp falloff in demand for the paper used in glossy magazines has the company looking in new directions. Shares +6.6% in Johannesburg, ADRs +5.5% premarket.
Sappi (SPP +3.1%) trades higher after the maker of paper and pulp products announces a series of restructuring moves for its underperforming European and South African operations. Sappi expects to take restructuring charges of ~$160M for FQ4 '11, which ended in September.