2015 Dec pp banner1200 2 mob
2016 Jan pp banner1200

commodity cliffOP/Papermakers'
plunge persists...

Paperless, printless trend
forces race to reinvent or
ruin for old brand leaders

Most leading OP, Paper & Print makers have now reported a Q1'19 sales slowdown. We analyse the market, comparative performance and any plans for reinvention. Paper demand is plunging, but price hikes disguise the decline, spiralling down 50% since 2008 Complete & updated for HP results today




Paperless Office peopleOP, paper & printermakers Q1'19 Review

The Paperless Office (Pic right) is happening big time. Even papermakers know it and have taken action to minimise losses and maximise pricing power in the race to the bottom.

Back in 2007, the US communications papermaking capacity was 6.4M tons supplemented by 600k-1M tons of imports, mainly Europe, Brazil & Asia. Today, 12 years later, US capacity has shrunk to 3.3M tons and after Georgia Pacific's decision to close its Port Hudson (LA) mill will further reduce to 2.8M tons...a 56% reduction on 2007.

Meanwhile, IP who planned to convert 250k tons of paper at its Selma mill (AL) over to packaging production will probably postpone the move until June 2020. This together with the ITC's decision to backtrack on penalising Navigator (ex-Portucel, pic right) for allegedly dumping paper on the US market freed the Portuguese maker to ship 200k tons into the US in 2018.

So this left Domtar (1M tons capacity), PCA's Boise with 800k tons and IP with 600k tons as the US leaders all raising prices in concert with Navigator at an average of 8% in 2018.

sutton mark IP llThe world's leading papermakers have all 'repurposed' to new markets inc. Finlands's UPM/Stora Enso into packaging and biorefining; South Africa's Sappi & Mondi into packaging; IP is now the packaging powerhouse (70% sales); PCA in packaging and tissues; Domtar into towels/tissues after GP/K-C lead the move 10-15 years ago.

OP, paper & printermakers Q'19

• Acco - Sales decreased 3% to $394m, acquisitions added 2.9%. Comparable sales decreased 0.5% as lower volume (-3.4%) offset pricing which added 2.9%. Hit by wholesalers' woes e.g. Adveo bankruptcy, Spicers implosion; and uncertainty in US caused by #STRESS consolidation & Depot disintegration.

• Canon: Sales were Y864Bn ($7.8Bn) down 10%. The office segment sales were down 3.9% to Y426Bn; Imaging systems sales were Y176Bn down 17%; medical systems Y109Bn down 6.5% and Industrial Y176Bn down 17%.

• International Paper (Mark Sutton,pic right) Sales were $5.64Bn up 0.4% primarily through its acquisition of Weyerhaeuser pulp operations (aka GCF, 12%/mix) $689m up 1.8%; with Industrial packaging $3.8Bn (68% sales mix) up 0.1%; printed paper $1.06Bn (19% mix) up 1.1%....primarily from high price increases

• Stora Enso: Sales €2.63Bn (€2.58Bn) increased 2.2% with Paper sales (€760m or 29% sales mix) down 1.5%, all from price increases offsetting lower volumes, down 8.0%.

• PCA/Boise: Sales were $1.73Bn up 2.5% with packaging up 5% (Up 8% in Q4); but paper down 11%, or 21% down in volume offset by price increases up 10%. 
williams john dumtar bin• UPM: Sales were €2.69Bn up 7%. Communication Paper division (45% sales mix) sales were €1.2Bn down 6.6% with higher selling prices (up 14%) offsetting lower volumes (down 6%)

• Domtar (Pic John Williams, pic right). Sales were $1.38Bn up 1.0%. Paper & Pulp sales were $1.15Bn (83%/sales mix) up 4.3% with price hikes c10% hiding a 4% volume drop. Personal Care sales were $247m (17% mix) down 5.7%

• Kimberly Clark: Sales of $4.63Bn down 2%, but up 3% organically, boosted by 4% price increases.Sales of $4.63Bn down 2%, but up 3% organically, boosted by 4% price increases.

• Georgia Pacific: Announced in Jan'19 closure of its comms/copy paper Port Hudson mill. This withdrawal takes 500k tonnes off the declining market. GPac is making a $120 million investment in the Naheola mill in Choctaw County (Alibama). The company announced plans for a new tissue machine and roll storage building to support the company’s retail bath tissue business.

• Sappi: Sales were $1.5Bn up 0.5% (down from 6.6% growth rate in Q4'18) Graphic paper markets were much weaker than expected during the quarter, with demand in our major product categories down between 8% and 13% in Europe and
North America.
• Konica Minolta Q4'19 Sales were Y282Bn, up only 0.2%. In Office Business Y151Bn down 3.1%. Full year sales were Y1059Bn ($9.6Bn) up 2.7%. By business segment, revenue in the Office Business was Y588Bn up 0.7% driven by sales of color models, and the Professional Print Business also posted an 6% increase in revenue (Y228Bn), reflecting a higher number of sales of both color and monochrome models. 

• Kyocera Sales were Y393Bn ($3.5Bn) down 4.4%. Communications/printer sales revenue Y73Bn up 10.6%. Document Solutions' sales Y104Bn down 3%.

groth magnus essity brandsRicoh - Q4 sales were Y524Bn down 4.3%, Domestic sales were Y218Bn down 1.2%. Overseas sales were Y308Bn down 6.4%. Full year sales were Y2,013Bn down 2.4% or a marginal organic growth  of 0.4%"Office Printing was Y1,086Bn down 5%; Office Services Y481Bn up 7.5%; 

• Essity: (CEO Magnus Groth, pic right) Sales increased 9.4% to SEK 30,656m (28,020). Organic net sales increased 4.3% (+2.6% in Q3). In emerging markets, which accounted for 37% of net sales, organic net sales increased 9.1%

• The Navigator Co. Sales were €422m up 9.6%.. Printed paper demand was down 2%; price boosted sales by 8%+ 
• Brother: "Sales were Y162Bn down 9.3% or 6.6% organically. Printing solutions sales were Y96Bn down 6.5% and 2.5% organically. 

• Epson Sales were Y261Bn down 3.0% with operating profits Y12Bn down 26% from Y16Bn. Revenue in the printing solutions segment was Y177Bn (68%/mix) down 3.3%. Visual comms and wearables were slightly down 2.5% and 3.1% respectively.

Laschinger mary xpedx• HP Inc  Sales were $14.0Bn up 0.2% compared with 1% in Q1'19 & 10% in Q4'18, with both Personal Systems up 5% organically and Printing down 2% organically. 

• Antalis (Euro #1 paper merchant) Sales were €551m down 6.7% or 4% on an organic basis. Paper volumes (68% mix) were down another 7% in spite of 20% price increases throughout 2018

• Mondi: Q4'19 Sales FY2018 were €7.5Bn  with Fibre packaging €4.1Bn up 10%; Consumer packaging €1.6Bn down 2% and Paper €1.9Bn up 2% with volume up only 0.2%


• Smurfit Kappa: Sales were €2.3Bn up 2% organically. Europe +2%; Americas +3%. Higher prices boosted lower demand

• Veritiv: (CEO Mary Laschinger, pic right) Sales $1.94Bn, down 7.6%, even after 8% price hikes (Est: volume down 14%).

• LSC Comms the US OP conglomerate (inc Pendaflex, Ampad, TOPS, Quality Park) down another 9% (tailspinning)

• KP Tissue (Kruger) Revenue increased by 8.4% to $351m. (Growth rate in Q4 5.7%). Growth achieved through markrt share gains


Related Posts

Business womens' Annual Buying Survey 2019
1 Days ago
Business womens' Annual Buying Survey 2019
What Lucy wantsin business supply Mobile webstores, One click,human personal …
Dealer Productivity Championship 2019 - Leaderboard Half Year
6 Days ago
Dealer Productivity Championship 2019 - Leaderboard Half Year
2019 Champions of Productivity Will lean stocking dealerssurpass stockless etailers …
Sustainability Superstars 2019
9 Days ago
Sustainability Superstars 2019
Sustainability Superstars’19 'World Environment Day' focus: cutting Air Pollution 'World …
Wholesalers Benchmarks 2019
9 Days ago
Wholesalers Benchmarks 2019
Wholesalers'Benchmarks'19 MDM Report highlights slower economic trends Modern Distribution Management's …
Pin It


Be the first to comment

"Tomorrow's News Today,

not yesterday's news tomorrow."

twitter heart50googleheart50newfacebook heart50


Please register to the site before you can sign for a list.
No account yet? Register

Top Indexes

Mobile Webstore Masters 2019

mobile webstore masters 2016Mobile Webstore
M a s t e r s 2019

The progressive resellers
that get what Lucy wants

We've hammered home the mobile webstore imperative for 9 years now. Yet still less than 20 resellers in US/UK have responded to Amazon, Wayfair & Staples moves that drive huge sales volumes with users. We review leaders' progress inc. Staples' new webstore... Updated later today 


Dealer Productivity Championship 2019 - Leaderboard Half Year

Productivity leaders 20182019 Champions
of Productivity 

Will lean stocking dealers
surpass stockless etailers

We've concluded the Proficiency Index Dealer Productivity 2019 Half Year Review, the most universally accepted indicator of dealer profitability. Dealers have submitted sales forecasts for 2019/current employee numbers (FTE's). We'll finalise the numbers and publish championship leaderboard... Updated


Retail Retreat Revisited Q4'18

retail retreat doomedR e t a i l
R e t r e a t
R e v i s i t e d

Bigbox & trad dealers
face death by 1000 clix

The financial press is awash with headlines of struggling retailers as ecommerce trends in the US/UK soar and threaten traditional resellers/department stores. We discuss latest developments from Q4'18 results. Updated


Top 20 Foodservice dealers 2019

Screen Shot 2018 12 02 at 5.31.27 PMTop FoodService
resellers rising

Insightful market analysis
into business supply rivals.
FaB growth opportunity...


The US FoodService market (exc. food) is estimated at $300Bn and grew at 3-4% over recent years. Some of the leading progressive business suppliers are making early inroads. We study the Top 20 players and rising stars. 


Wholesalers Benchmarks 2019

Screen Shot 2019 07 02 at 10.55.11 AMWholesalers'

MDM Report highlights
slower economic trends

Modern Distribution Management's (MDM) 14th annual economic benchmarks for wholesalers report examines sales, inventory levels, gross margin, productivity and other critical benchmark data trends for 19 sectors in the distribution industry. We benchmark best practices in business supplies.....Updated


Sustainability Superstars 2019

hindmarch simone commercial 2017Sustainability

'World Environment Day'
focus: cutting Air Pollution

'World Environment Day 2019'
was hosted by Hangzhou city in China on 5 June. The theme was cutting 'Air Pollution'. We invited dealers, distributors and manufacturers to submit details of their corporate social responsibility (CSR) initiatives and progress. We highlight the criteria and will review progress throughout July inc. case studies. Updated


Business womens' Annual Buying Survey 2019

Lucy mobile montage v3What Lucy wants
in business supply

Mobile webstores, One click,
human personal service
Light, more hygienic offices

Proficiency Index's 15th Annual Businesswomen Buying Survey, primarily users (typically Lucy) with executive power, is more valuable than ever. It provides even greater insight into the latest trends in mobile shopping for business.....Report on Monday


Member Login