Arjo Wiggins displays benefit of higher European demand
Friday 09 September 1994
The advance came despite a 45 per cent rise in the cost of pulp, which Arjo said it had succeeded in passing on to customers.
But the size of the profit increase was exaggerated because the comparable figures were depressed by the one-off costs of a redundancy programme last time.
Pre-tax profits for the six months to 30 June were pounds 105.1m compared with pounds 63m. Operating profit was pounds 122.4m ( pounds 104.1m). The shares rose 8p to 287p.
Arjo made profits of pounds 49.3m from Europe in the half, 52 per cent up on the pounds 32.4m it made in the first six months of 1993. Mr Isaac said that a 45 per cent increase in pulp prices equated to a 12 per cent increase in costs of production.
But it benefited directly from the increasing price of pulp as it reduced losses in its own pulp-producing subsidiaries from pounds 16.2m to pounds 3.4m. Mr Isaac said pulp was making a profit in the second half of the year.
The company earns most of its profits in North America, where it concentrates on the manufacture of high-quality paper. Arjo earns a profit return on sales of 19 per cent in North America compared with 4.6 per cent in Europe, but North American profits were unchanged at pounds 72m.
Earnings per share were 8.1p compared with 3.6p last time. If exceptional items are discounted earnings rose from 5.4p to 8.1p. The interim dividend was unchanged at 2.65p.
Jo from Northern Ireland was less than impressed by Russell Brand's attempt to stage a publicity stunt
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
Shock poll shows voters believe Ukip is to the left of the Tories
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
New era of cheap oil 'will destroy green revolution'
Ukip founder Alan Sked and Nigel Farage 'begged Enoch Powell to stand as a candidate'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
iJobs Money & Business
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...
$125 - $175 per annum: Carlton Senior Appointments: Senior Wealth Manager In...
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...