James Cropper Profitable Overall, But Small Loss for Specialty Papers

28th Jul 2010 11:14

LONDON (Dow Jones)--James Cropper PLC (CRPR.LN), a European colored and specialist paper manufacturer, said Wednesday that overall the Group has traded profitably in the opening quarter with strong performances from Technical Fiber Products, or TFP, and James Cropper Converting, although Specialty Papers recorded a small loss. MAIN FACTS: -The upward movement in pulp prices and additional energy costs have lead to James Cropper Specialty Papers recording a small loss in the opening quarter and will record a significantly reduced profit in the current year compared with fiscal 2010. -TFP's order book has increased significantly indicating that the impact of the recession on down stream customers is easing. -Chairman anticipates that TFP's sales to the aerospace, defense, security and consumer electronics sectors will build strongly in the next 12 months with profit levels recovering accordingly. -Chairman sees an increase in Coverting unit's profitability in the current financial year compared to recent years. -During the first quarter The Paper Mill Shop closed three further under-performing outlets; There will be further outlet closures in the current year. -Will need to make further significant investment in our businesses, but borrowings remain low and cash position strong. -Company has robust growth plans that should deliver more consistent and increased levels of profitability in the coming years. -Shares at 1010 GMT down 1.5 pence, or 0.9%, at 157 pence valuing the company at GBP13.3 million. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [email protected] (END) Dow Jones Newswires July 28, 2010 06:14 ET (10:14 GMT)