Paper

Sappi has reported improved second-quarter results despite warning over rising input costs.

For the quarter ending March 2008, the paper producer’s operating performance improved both year-on- year and compared to the previous quarter.

Sales increased to $1.47bn (£752m) compared to $1.318m at the same time a year earlier. Operating profit, excluding special items, increased to $97m from $73m a year ago.

Chief executive Ralph Boëttger said: “Our key challenge remains to restore our European business to acceptable profitability.”