Sappi Reports Record First Quarter, but Warns of Challenges Ahead

Paper and pulp business Sappi produced its best first-quarter results in its history, but noted that it expected earnings to normalize in its 2023 financial year after three strong quarters. 

Sappi CEO Steve Binnie said in a statement: “Ebitda (core earnings) for the second quarter of 2023 financial year is expected to be below that of the first quarter.” Sappi said the lower profits compared to the previous quarter is a sign of the slowing global economy as high inflation and interest-rate hikes continue along with the underperforming Chinese economy, leading to lower demand. “In addition, a rapid downstream inventory accumulation in all our major product categories also suppressed underlying demand,” the company said.

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Source: Shop Sa

Toronto Office Vacancies Rise in Q4

A new fourth-quarter 2022 Office Insight report for Toronto from JLL found the total vacancy rate in downtown Toronto rose 100 basis points quarter-over-quarter, reaching 12.6% in Q4. The negative results were largely due to anchor tenants vacating some of their offices, such as CIBC at 22 Front St. and IA Financial Group at 522 University Ave., stated a release. As a result of the recent vacancies and limited supply being added to the market, net negative absorption of minus 706,244 square feet was recorded in downtown Toronto in Q4.

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Source: Daily Commercial News