Top 10: recovery is in the air but profits remain thin.2004 did live up to its billing as a turnaround year, but the world's Top 10 pulp and paper companies are a long way from popping the champagne corks. A resurgence in demand buoyed many annual reports across the paper industry, but there was no shortage of other factors that served to dampen any over-exuberance on the part of papermakers worldwide. Higher input prices for energy, chemicals, recovered paper etc were frequently cited as a drag on Verb 1. drag on - last unnecessarily long drag out last, endure - persist for a specified period of time; "The bad weather lasted for three days" 2. corporate profitability along with low operating rates Operating rate The percentage of total production capacity of a company, industry, or country that is being used. operating rate The portion of capacity at which a business operates. and a soft pricing environment. For the Europeans, a weak U.S. dollar played a large part in proceedings, helping undermine any idea of pushing through significant price increases. Demand was reasonably robust across North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and prices generally fared somewhat better than in Europe for several grades, but the Europeans found it extremely difficult to translate strengthening demand into higher operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. as a strong Euro attracted additional imports. [ILLUSTRATION OMITTED] As for the Top 10 companies, the rankings by total sales (including pulp, paper, converted products, and forest products) have changed from last year. International Paper (1) retains the top spot with a 6.6% jump in sales to US$ 25.5 billion, but proving biggest is not necessarily best, the U.S. behemoth behemoth (bē`hĭmŏth, bĭhē`–) [Heb.,=plural of beast], large, fanciful primeval monster, like Leviathan, evoking the hippopotamus mentioned in the Book of Job. reported a small loss in net profits. By contrast, Weyerhaeuser (2) showed significantly improved profits for 2004 and snatched the number two slot from Georgia-Pacific (3), where restructuring chopped a slice off the top line. Stora Enso
SCA (Single Connector Attachment) An 80-pin plug and socket used to connect peripherals. With a SCSI drive, it rolls three cables (power, data channel and ID configuration) into one connector for fast installation and removal. (6) leapfrogged UPM-Kymmene (7) in the contest for sixth and seventh place, but despite the fact that SCA did better in terms of turnover, UPM UPM Universidad Politécnica de Madrid UPM Universiti Putra Malaysia UPM University of the Philippines - Manila UPM Unit Production Manager (film and video production) UPM User Profile Management UPM United People's Movement will still be happy to see the improvements it made to the bottom line. The two Japanese groups included in last year's rankings also managed to show some good results for the year, with the renamed Nippon Paper Group (8) (formerly Nippon Unipac) snagging Snagging is a term used in the construction industry in the United Kingdom and Ireland. Snagging is the production of a list of quality defects at the end of a build process/phase/stage (a "Snag List" or "Snagging List"). eighth place as Oji Paper (9) comes in just a few dollars behind at ninth. Proctor & Gamble (10) is once more a hard one to figure as the split between the business segments make it difficult to calculate a true figure for pulp, paper and converting sales. That task looks as though it will be even trickier next year as another reorganization creates even larger business divisions. For now though, we'll overlook that just as we consider M-Real as a separate paper company even though the Finnish pulp and paper group's parent company, Metsaliitto, would add Botnia, Metsa Tissue and FinnForest's results to the total mix, putting Metsaliitto at the number 8 spot in the Top 10. Who knows, though. Currency movements could yet bring SmurfitStone or Meadwestvaco back into the Top 10 next year. International Paper www.InternationalPaper.com 400 Atlantic Street Stamford, Connecticut Stamford is a city in Fairfield County, Connecticut, United States. According to 2006 Census Bureau estimates, the population of the city is 119,261, making it the fourth largest city in the state. 06921 USA +1 203 541 8000 Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. : John Faraci Total Sales: $25.6 billion Profile: International Paper is the world's largest paper company, operating a wide range of pulp, paper and packaging and converting plants, as well as merchanting companies, wood product facilities and specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. plants. International Paper (IP) is active in practically every part of the forest products supply chain worldwide, covering 34 pulp, paper and packaging mills, 145 converting and packaging plants, 26 wood products facilities, 13 specialty chemicals plants, and 2 specialty panels and laminated laminated /lam·i·nat·ed/ (-nat?ed) having, composed of, or arranged in layers or laminae. laminated made up of laminae or thin layers. products plants, along with distribution assets. Additionally, the company owns 50.5% of Carter Holt Harvey Carter Holt Harvey is an Australasian forest products company, with significant interests in wood products, pulp, paper and packaging. The company employs approximately 10,500 people across Australasia. , operating primarily in New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. and Australia. Products: IP's output stretches across a broad range of product lines, including pulp, fluff pulp, coated and uncoated printing and writing papers, specialty papers, diapers, sanitary napkins sanitary napkin n. A disposable pad of absorbent material worn to absorb menstrual flow. sanitary napkin Kotex, sanitary pad Gynecology An absorbent pad worn externally to soak up menstrual flow , containerboard con·tain·er·board n. A corrugated or solid cardboard used to make containers. , bleached packaging board, converting and specialty industrial papers. Lumber and other forest products account for a major part of the product mix alongside, distribution and chemicals. Corporate Review: International Paper (IP) set the tone for the market in 2004 noting that markets were buoyant and sales performed well, but input costs were higher. The company showed 2004 sales well up on the previous year at $25.55 billion, compared to $23.96 billion in 2003 (adjusted for acquisitions and divestments). As a result, increased volumes and higher prices helped push operating profits into a far better position helped further by product rationalization and efficiency programs. Operating profits would have improved further if it were not for the effects of higher energy and raw material costs, but in the end there were other factors that hit the bottom line hardest. Modest but improved profits turned to accounting losses as IP took a hit on the sale of Weldwood in Canada and Carter Holt Harvey's tissue businesses. Net profits showed a loss of $35 million compared to the previous year's net profit of $302 million. Weyerhaeuser Corporation www.Weyerhaeuser.com Weyerhaeuser Company PO Box 9777 Federal Way, WA 98063-9777 USA +1 253 924 2345 Chairman, President and CEO: Steven Rogel Total Sales: $22.7 billion Profile: Weyerhaeuser Company is one of the largest pulp and paper companies in North America. The group owns or leases around 38 million acres of forestland for·est·land n. A section of land covered with forest or set aside for the cultivation of forests. , the majority of which is located in Canada. As well as growing, harvesting and distributing pulp, paper and other forest products, the company operates a sizeable real estate division. Products: Weyerhaeuser's wood products businesses produce and sell softwood softwood Timber obtained from coniferous trees (mainly of the pine and fir families). With the exception of bald cypress, tamarack, and larch, softwood trees are evergreens. and hardwood lumber, plywood plywood, manufactured board composed of an odd number of thin sheets of wood glued together under pressure with grains of the successive layers at right angles. Laminated wood differs from plywood in that the grains of its sheets are parallel. , veneer veneer (vənēr`), thin leaf of wood applied with glue to a panel or frame of solid wood. The art of veneer developed with early civilization. , oriented strand board Oriented strand board, or OSB, or waferboard, or Sterling board (UK), is an engineered wood product formed by layering strands (flakes) of wood in specific orientations. , panels, engineered lumber products and treated products. The pulp and paper businesses cover pulp, coated and uncoated papers, business forms and bleached board. In addition, Weyerhaeuser produces a wide range of containerboard and other packaging and operates an extensive paper recovery and recycling system. Corporate Review: Reducing the group's debt burden was again a key element in Weyerhaeuser's operations in 2004 as forestlands were sold and 11 facilities closed as part of an ongoing rationalization program. Sales climbed in every division as Weyerhaeuser reported a healthy 14% increase in overall turnover for the year to $22.7 billion. The pulp and paper division reported a 6.8% increase in sales with much of the jump down to a combination of higher prices and volumes on the pulp side. The Containerboard Packaging and Recycling division also showed an increase in turnover as sales climbed by almost 5% to $4.54 billion. However, it seems fair to point out that wood products had a stellar year and contributed much to the jump in overall sales. Georgia-Pacific Corporation www.GP.com 133 Peachtree Street Peachtree Street is the main north-south street of Atlanta, Georgia. The city grew up around this one street, and many of its historical and municipal buildings are or were located along it. Atlanta, Georgia 30303 USA +1 404 652 4000 Chairman and CEO: A.D. "Pete" Correll Total Sales: $19.6 billion Profile: G-P G-P Gel'fand - Pinsker (channel code) is among the largest producers of tissue products in North America in addition to holding significant positions in markets in Europe and elsewhere. The group is also a major player in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. containerboard market, as well as operating large-scale businesses producing and distributing building products. Products: Georgia-Pacific's operates across four principal business areas--tissue and disposable tabletop products such as toilet tissue, napkins, paper plates etc; containerboard and packaging; bleached pulp and paper; and the production and distribution of building products, including various industrial wood products, lumber and gypsum gypsum (jĭp`səm), mineral composed of calcium sulfate (calcium, sulfur, and oxygen) with two molecules of water, CaSO4·2H2O. It is the most common sulfate mineral, occurring in many places in a variety of forms. board. Corporate Review: A much better year in 2004 saw Georgia-Pacific (G-P) drive operating profits up by 30% as net profits almost doubled to $626 million from $324 million in the previous year. As a result, the group's operating profit showed a 8.3% return. Admittedly, a big chuck of the improvement in overall sales came from the building manufacturing unit, which now accounts for 37.8% of sales. But there is no denying the contributions made by the consumer products and pulp and paper units, although the company's comparatively smaller packaging division did shrink. G-P faced up to some serious challenges with indebtedness in 2004, divesting $1.5 billion of assets including the building products distribution business and stand-alone pulp mills A pulp mill is a manufacturing facility that converts wood chips or other plant fiber source into a thick fiber board which can be shipped to a paper mill for further processing. . As well as paying off $2 billion in debt overall, the company cheered financial markets with a 40% dividend increase. The Consumer Products division saw some margin improvement with higher volumes and sales prices a feature for the year and for 2005 the company is looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. further growth, especially in areas such as Russia and the Baltics. The company also believes that it is on target to achieve its end-2006 goal of extracting $1.2 billion in operating profits from its North American Consumer Products division. Inevitably, G-P's asbestos liabilities remain a worry for investors, but the company is moving in the right direction. Stora Enso www.StoraEnso.com Stora Enso Oy PO Box 309, FIN-00101 Kanavaranta 1 Helsinki, Finland +358 2046 131 CEO: Jukka Harmala Total Sales: Euro 12.4 billion ($16.8 billion) Profile: Stora Enso is an integrated forest products group with some 45,000 employees in more than 40 countries spread across five continents. The group boasts over 16.4 million metric tons/yr of paper and board production capacity making it the largest in the world on this measure. Stora Enso is listed in Helsinki, Stockholm and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Products: The group is active in several major segments, including graphic and office papers, newsprint newsprint low grade paper used for newspapers. Old newspapers are fed to cattle as an alternative roughage and may occasionally be ingested by dogs. Significant amounts of lead are accumulated in tissues; no cases of poisoning have been recorded in cattle, though it has been , packaging boards and wood products. Most of the production capacity is located in the Nordic countries and Europe, but North America, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Asia are all becoming more important as the group expands. Corporate Review: Operating profits may have dropped, but Stora Enso produced a positive result at the bottom line showing net profits of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 740 million for 2004 compared with EUR 138 million in the previous year. The group also managed to increase sales, which climbed a modest 1.8% to EUR 12.4 billion. Sales volumes turned out to be relatively healthy, with publication and fine paper deliveries up 6-8%, but prices were still on the low side in the first half before stabilizing later in 2004. The declining value of the U.S. dollar along with higher energy and chemical costs also impacted results to a degree as profitability declined slightly. It was a busy year for the company as construction on the massive Veracel pulp mill project in Brazil moved ahead, major rebuilds were undertaken (two in the U.S. and several in Europe), Swedish forestlands were moved to Bergvik Skog and others in Canada sold off, acquisitions of both paper and merchanting operations took place (notably Intercell and Scaldia) and the European Commission European Commission, branch of the governing body of the European Union (EU) invested with executive and some legislative powers. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the European Community opened an anti-trust investigation. Kimberly-Clark Corporation www.Kimberly-Clark.com PO Box 619100 Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. 75261-9100 USA +1 972 281 1200 Chairman and CEO: Thomas Falk Total Sales: $15.1 billion Profile: Kimberly-Clark is one of the world's largest hygiene products groups, boasting a host of internationally recognizable brands. The company is focused on building its personal care, consumer care and business-to-business segments worldwide. The group and its equity companies have manufacturing facilities in 37 countries, selling products in more than 150 countries. Products: Kleenex, Huggies, and Kotex are among a long list of major household brands that Kimberly-Clark is responsible for bringing to consumers around the globe. Across the corporation, three main business segments represent the company's products. Personal care includes the disposable diaper, baby wipe baby wipe baby n → lingette f (pour bébé) baby wipe baby n → Ölpflegetuch nt and feminine and incontinence products such as Huggies, GoodNites, Kotex and Poise poise n. A centimeter-gram-second unit of dynamic viscosity equal to one dyne-second per square centimeter. poise, n . The consumer tissue unit manufactures facial and bathroom tissue, paper towels, napkins etc including Kleenex, Scott and Cottonelle. And finally, the business-to-business division makes health and hygiene products for the away-from-home market sold under brand names such as Scott, Kimwipes, WypAll and Safeskin. Corporate Review: For the paper industry, the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of Neenah Paper was one of the highlights of the year for Kimberly-Clark. The move was completed in November and means that 2004 will be the last year that results from the group's U.S. fine and technical papers and the Canadian pulp mills will appear in K-C's top line. Neenah retains a relationship with K-C through a long-term pulp supply contract, however. K-C had a strong year as net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight climbed 7.5% in the face of increased price competition in the diaper market in North America and Europe and higher input costs for items such as fiber and energy. Sales hit $15.1 billion and even more encouragingly operating profits were also up 7.5% for the year as efficiency gains offset higher costs. In the personal care unit, part of the turnover increase was due to the consolidation of Klabin and various currency effects, although volumes were up. However, the group faced a tough operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. as selling prices in North America and Europe came under pressure. Nevertheless, tight capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. and financial discipline helped deliver record free cash flow of $1.4 billion in 2004, allowing the company to increase the dividend significantly. Svenska Cellulosa Aktiebolaget Svenska Cellulosa Aktiebolaget (SCA) is a Swedish pulp and paper manufacturer and consumer goods company. It has approximately 50,000 employees and a turnover of approximately 100 billion SEK (10 billion euro). (SCA) www.sca.se SCA, Box 7827 SE-103 97 Stockholm, Sweden +46 8 788 51 00 President and CEO: Jan Astrom Total Sales: SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 90 billion (US $13.5 billion) Profile: SCA is Europe's largest tissue producer. The group produces a broad variety of hygiene products, which account for around half the company's total sales. Packaging solutions and publication papers are also big earners. The packaging group is the second largest business segment contributing around 35% of turnover. Germany, the UK and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. are the company's top markets, with France, Sweden and Italy following. Products: Consumer items such as handkerchiefs, toilet tissue, feminine hygiene Feminine hygiene is a general term used to describe products used by women during menstruation, vaginal discharge, and other bodily functions related to the vulva. Sanitary Towels (also known as maxi-pads or napkins), pantiliners, tampons, and feminine wipes are the major and baby diapers provide the largest proportion of the company's revenues. However, packaging solutions such as specialty packaging generate significant returns in addition to the company's publication papers, including LWC LWC Lindsey Wilson College (Kentucky) LWC Liquid Water Content LWC Lightweight Coated paper LWC Language of Wider Communication LWC Lincoln-Way Central LWC Lost Workday Case LWC Leave Word Calling LWC Light Weight Concrete , SC and newsprint. Pulp, solid wood products and timber make up the rest of the turnover. Corporate Review: In his 2003 annual report, Jan Astrom, SCA's president and CEO, said that 2004 would be the turnaround year that would see SCA get back to its full profitability potential. Unfortunately, the financial results do not bear that out as the company came under pressure in several of its main markets and saw profits fall on last year and return on capital employed Return on capital employed (ROCE) Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets). dip to 7%--the lowest level for several years. A weak economy in Europe contributed to softening prices while a better performance in North America was hit by higher raw material costs. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Astrom, though, the company is still doing well relative to its peers in what is a weak business climate. SCA noted that the personal care segment had performed comparatively well, showing volume growth and stable pricing, but a 3% price decline hit the tissue business, despite the benefits from rationalization and cost-cutting programs. The company also believes that 2005 will be a tough year in its markets and is looking for further rationalization across the group. UPM-Kymmene www.UPM-Kymmene.com UPM-Kymmene Group Eteloesplanadi 2 PO Box 380, FIN-00101 Helsinki, Finland +358 204 15 111 President and CEO: Jussi Pesonen Total Sales: [euro]9.8 billion ($13.3 billion) Profile: UPM-Kymmene is the world's largest producers of magazine papers by volume, but also produces a variety of other grades and wood products. The group has production facilities in 15 countries around the globe and a sales network spanning five continents. Products: The company operates five main business areas. Magazine papers accounted for 32% of the company's turnover in 2004, with fine and specialty papers making up 22% of the total and the remainder coming from wood products (14%), converting (14%) and newsprint (13%). Corporate Review: A fall in sales prices and a stronger euro proved to be a drag on UPM's results in 2004, but a resurgence in delivery volumes and the early completion of a major cost-cutting program helped the group achieve higher operating profits and an increased turnover for the year. The group also managed to shave 8% off its gearing ratio Gearing Ratio A general term describing a financial ratio that compares some form of owner's equity (or capital) to borrowed funds. Gearing is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds. to end the year at 61%. UPM secured increases in the magazine paper market in North America where capacity was constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. , but Europe proved a tougher nut to crack as a stronger euro played its part. Fine and specialty paper grades fared reasonably well, while newsprint demand stabilized even as prices softened. One interesting point about UPM is that higher energy prices did not impact the group as it is largely self-sufficient in electrical power. Rebuilds at Wisaforest's pulp mill and Rauma's PM 2 provided some of the highlights in the capex area, but this year UPM is looking forward to the summer startup of a new fine paper machine at Changsu in China. Nippon Paper Group www.np-g.com 1-12-1 Yurakucho Chiyoda-ku Tokyo 100-0006, Japan President and CEO: Takahiko Miyoshi Tel: +81 3 3218 9300 Total Sales: Yen 1,192 billion (US$ 11.4 billion) Profile: Formerly known as Nippon Unipac Holding, Nippon Paper Group is Japan's largest papermaker and holds a large share of the domestic market particularly with 31%. Products: The Nippon Paper Group is the merged entity created from the former Nippon and Daishowa groups. The company produces practically every pulp and paper grade from tissue and containerboard to liquid packaging cartons. Pulp and paper forms the vast majority of the company's sales, but the group is also involved in building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . , chemical products and so on. Corporate Review: There were limited signs of improvement across the Japanese economy in 2004, but the slight upturn that there was allowed Nippon Paper to record a 0.6% rise in domestic sales even as paper prices dipped slightly overall. Uncoated woodfree was one of the worst performers over the period, but the traditional Japanese grade "bitoko-shi" fared rather better and the net result was more or less a wash. The same could not be said for net profits though, which rose almost 400% to Yen 24.2 billion from an admittedly low level in 2003. Given the increases in recovered paper, woodchips and energy costs, it seems that the group has managed to deliver some positive results from its rationalization program. Nippon Paper is also boosting its presence in China by utilizing idle machines at a new plant in China's Hebei Province Noun 1. Hebei province - a populous province in northeastern China Hebei, Hopeh, Hopei Cathay, China, Communist China, mainland China, People's Republic of China, PRC, Red China - a communist nation that covers a vast territory in eastern Asia; the most . The plan is to start production of uncoated woodfree and groundwood grades in 2006. Oji Paper www.ojipaper.co.jp Oji Paper Giza 4-7-5 Chuo Ku Tokyo 104-0061 Japan +81 3 3563 1111 President and CEO: Shoichiro Suzuki Total Sales: Yen 1,180 billion ($11.3 billion) Profile: Oji Paper is one the largest Asian pulp and paper producers. The integrated producer is particularly active in the Japanese market, but it also boasts a broad portfolio of forest assets around the globe, which provide 70% of the group's woodchips. Australia, New Zealand, Vietnam, China and Brazil provide much of the group's raw material needs. Products: Like many of its Asian competitors, Oji Paper runs a wide range of diverse product lines, ranging from newsprint and publication papers to corrugating medium, tissue and thermal papers thermal paper n → papel m térmico . Much of the group's chip imports go into supporting production for domestic consumption, but Oji also promotes sales around the globe. Corporate Review: Sales may be down 2.7% for the year, but Oji Paper will be happy to see profitability moving up as net profits came in 157% higher at Yen 33.1 million. Admittedly, this represents a modest 2.6% of turnover (sales), but after losses in 2002 consistent improvement is to be welcomed. As Oji points out, the improvement has little to do with macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. conditions. Japan's economy is still facing deflationary de·fla·tion n. 1. The act of deflating or the condition of being deflated. 2. A persistent decrease in the level of consumer prices or a persistent increase in the purchasing power of money because of a reduction in available pressures and consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. remains sluggish, so much of the improvement has had to be secured from cost-cutting and efficiency gains. As a result, several units were streamlined, machines at the Nichinan and Shiga mills were shut down and the mill has invested in paper and plastic fuelled boiler technology to reduce energy costs. The group has already set itself ambitious targets for future growth with a plan to build a Yen 220 billion integrated pulp and paper mill in Nantong City, Jiangsu Province, China. If all goes to schedule, the mill could be churning out 1.2 million metric tons of paper, including coated grades, when it reaches full capacity in 2011. Procter & Gamble www.PG.com One Procter & Gamble Plaza Cincinnati, Ohio “Cincinnati” redirects here. For other uses, see Cincinnati (disambiguation). Cincinnati is a city in the U.S. state of Ohio and the county seat of Hamilton County. 45201-0599 USA +1 513 983 1100 Chairman, President and CEO: AG Lafley Pulp, Paper & Converting Sales: $10.7 billion Profile: Procter & Gamble is one of the world's largest consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and companies, reporting total sales of $51.4 billion in 2004. The company employs almost 110,000 people in 80 countries around the globe and seeks to deliver top quality brands in a highly competitive global market environment. Products: The Top 10 will take into account P & G's baby and family care business segment, which covers diapers, wipes, tissues and towels, among other products. Within this segment, P & G controls some major brands in the paper industry, including Pampers Pampers is a brand of disposable diaper (or nappy) marketed by Procter & Gamble worldwide. Product information Diapers Pampers Diapers come in sizes going all the way up to Size 7. , Bounty and Charmin. P & G is a leader in using through-air-drying (TAD) tissue technology to create high-quality tissue products for the consumer market.
TOP 10 GLOBAL PAPER COMPANIES
2004
2004 2003
Sales Sales
1. International $25,548 $23,955
Paper
2. Weyerhaeuser $22,665 $19,873
3. Georgia-Pacific $19,656 $19,656
4. Stora Enso $16,779 $15,338
5. Kimberly-Clark $15,083 $14,026
6. SCA $13,486 $11,865
7. UPM-Kymmene $13,292 $12,333
8. Nippon Paper $11,445 $9,873
9. Oji Paper $11,327 $10,278
10. Procter & Gamble $10,720 $9,930
Companies Not Dollar
Denominated
Stora Enso Euro mill [euro] 12,396 [euro] 12,172
UPM-Kymmene Euro mill [euro] 9,820 [euro] 9,787
SCA SEK mill 89,967 85,338
Oji Paper Yen Millions 1,180,400 1,213,200
Nippon Paper Yen Millions 1,192,649 1,165,450
Dollar Exchange
Rates: 31-Dec-04 31-Dec-03
Euro 1.3536 1.2601
C$ 0.8308 0.7734
UK[pounds sterling] 1.9160 1.7858
SEK 0.1499 0.1390
NOK 0.1592 0.1501
Rates: 31-Mar-04 31-Mar-03
Jap Y 0.0096 0.0085
2004
2004 2003 2004
Net Profit Net Profit Employees
1. International ($35) $302 79,400
Paper
2. Weyerhaeuser $1,283 $277 55,000
3. Georgia-Pacific $626 $324 55,000
4. Stora Enso $1,002 $174 45,30
5. Kimberly-Clark $1,800 $1,694 60,000
6. SCA $545 $706 49,919
7. UPM-Kymmene $1,297 $402 33,433
8. Nippon Paper $233 $41 na
9. Oji Paper $300 $103 17,590
10. Procter & Gamble $996 $882 10,000
Companies Not Dollar
Denominated
Stora Enso Euro mill [euro] 740 [euro] 138 45,307
UPM-Kymmene Euro mill [euro] 958 [euro] 319 33,433
SCA SEK mill 3,639 5,075 49,919
Oji Paper Yen Millions 31,300 12,200 17,590
Nippon Paper Yen Millions 24,258 4,880 na
Dollar Exchange
Rates: 31-Dec-04 31-Dec-03
Euro 1.3536 1.2601
C$ 0.8308 0.7734
UK[pounds sterling] 1.9160 1.7858
SEK 0.1499 0.1390
NOK 0.1592 0.1501
Rates: 31-Mar-04 31-Mar-03
Jap Y 0.0096 0.0085
2004
2003 2004 2003
Employees % Sales Rank % Profit
1. International 82,800 6.6% 1 na
Paper
2. Weyerhaeuser 56,800 14.0% 2 363.2%
3. Georgia-Pacific 61,000 0.0% 3 93.2%
4. Stora Enso 44,000 9.4% 4 476.0%
5. Kimberly-Clark 62,000 7.5% 5 6.3%
6. SCA 44,000 13.7% 6 -22.7%
7. UPM-Kymmene 34,482 7.8% 7 222.6%
8. Nippon Paper na 15.9% 9 463.1%
9. Oji Paper 19,600 10.2% 10 190.6%
10. Procter & Gamble 98,000 8.0% 11 12.9%
Companies Not Dollar
Denominated
Stora Enso Euro mill 44,000 1.8% 436.2%
UPM-Kymmene Euro mill 34,482 0.3% 200.3%
SCA SEK mill 44,000 5.4% -28.3%
Oji Paper Yen Millions 19,600 -2.7% 156.6%
Nippon Paper Yen Millions na 2.3% 397.1%
Dollar Exchange
Rates:
Euro
C$
UK[pounds sterling]
SEK
NOK
Rates:
Jap Y
The Solutions! Top 10 ranking is based on total sales (turnover),
including pulp, paper, converted products, and wood products, with the
exception of Procter & Gamble, where only the relevant business unit
sales have been included.
JIM Jim Miss Watson’s runaway slave; Huck’s traveling companion. [Am. Lit.: Huckleberry Finn] See : Escape KENNY, INTERNATIONAL EDITOR ABOUT THE AUTHOR Jim Kenny is contributing editor/Europe for Solutions! magazine, and is based in Brussels, Belgium. He is the former vice president of editorial for Paperloop and today heads his own company, DSI (Dynamic Systems Initiative) An umbrella term for a suite of Microsoft products that help manage the Windows environment in large enterprises. DSI was introduced in 2003. . Contact him by phone at +32 2 534 4960, or by email at jim.kenny@dsinow.com. [ILLUSTRATION OMITTED] |
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