Sanitary paper producers in Germany expect strong sales and deteriorating profits

Wednesday, Mar 04, 2015

Producers of sanitary paper are expecting strong sales in the first quarter of 2015, but say that price adjustments are urgently needed.

They are very displeased with their earnings situation. Due to aggressive competition, at best they were only able to defend their prices last year. Furthermore, there was a significant negative impact on operating results from the increase in pulp purchase prices and from exchange rate movements.

Price adjustments were therefore urgently needed in the first quarter of 2015, producers told EUWID. However, they have met with very strong resistance from buyers.

"We are expecting a very difficult year", said one supplier, who believes that 2015 will also bring about "radical cuts in profitability". The new capacities coming onstream will increase competition, while no relieve is expected from pulp prices and exchange rates.


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