Globally the sales increased by 15.2 per cent compared to a year ago to $1.50bn. The company has announced price increases in Europe between eight per cent and 10 per cent, in order to offset the input cost price increases.

The unfavourable impact of wood, energy and chemical price increases on the group results was $19m compared to the previous quarter and $45m compared to a year earlier.

Ralph Boettger, chief executive of Sappi says, “Continued upward pressure on input costs remains our biggest challenge in the short term. Further increases are expected in energy, fibre and chemical costs during the fourth quarter.”

“We are responding to these challenges by continuing to focus on cost control, harnessing our buying power through a global procurement drive and through manufacturing efficiencies. Increasing selling prices continues to be essential to restore and improve profitability. We are implementing price increases in all our businesses.”

While operating profits excluding special items increased to $88m from $81m a year ago, the special items including an unfavourable plantation amounted to $111m.

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