PricewaterhouseCoopers (PwC) 2003 global forest and paper survey, the sixth in its annual series, summarised the performance of the top 100 forest and paper companies in the world. It found that total industry sales for 2002 were 184.4bn ($300.7bn), marginally down on 2001.

The survey also found that the global industry achieved a 4.1% return on capital employed (ROCE), down from 4.6% in 2001, and well below the 10%-12% target for the industry.

ROCE calculates the industrys profitability against the capital invested.

Operating profits were hurt by low prices and fell 13% to 13.2bn, while total net income, at 1.9bn, was down 50% on 2001.

However, PwC forecasts that global economic conditions will improve towards the end of this year and early 2004, allowing for a possible overall global economic improvement next year.

European forest and paper companies reported sales last year of 49.1bn, up 6.6% on 2001, although their net income suffered a 55% decline to 1.2bn.

In spite of this, Europe maintained pole position in net income rankings.

The 29 European companies surveyed showed declining operating profits of 3.3bn, a fall of just over 27% on 2001.

European ROCE also fell, from 6.7% to 4.4%.