| Louisiana-Pacific (LPX) announces that it has priced its offering of unitsconsisting of $375 mln aggregate principal amount at maturity of Senior Secured Notes due 2017 and warrants to purchase an aggregate of approx 18.4 mln shares of LP common stock, representing approx 15% of the total number of shares of LP common stock outstanding on a fully diluted basis, subject to mandatory cashless exercise provisions. |
LPX prices…
March 4, 2009 by repapGoldman Sachs now sees US economy falling 7.0% in 1Q
March 3, 2009 by repapDJ reports the economy is much worse than many
thought a few weeks ago and the jobless rate will be higher than many
expect, according to economists at Goldman Sachs. The co said it had
revised down its expectations for real gross domestic product in early
2009. It now thinks real GDP is contracting at a 7.0% annual rate in
the current quarter and will drop another 3.0% in the second. That
compares with an earlier forecast of respective drops of 4.5% and 1.0%.
Growth will be meager in the second half. For the year, the economy is
expected to contract 3.2% (versus -2.2% previously forecasted). “The
good news is that the bulk of this change is in business investment,
which typically lags other sectors of the economy. Meanwhile, the
steepest decline in consumer spending appears to be behind us,” Edward
McKelvey, Goldman economist, wrote in a research note. Goldman expects
business spending on plant and equipment as well as inventory
investment is weaker than first thought, but consumer spending is
probably stabilizing and will show slow improvement in the first half.
LPX Louisiana-Pacific downgraded to Underperform from Market Perform at BMO Capital Markets (1.30 )
March 3, 2009 by repapSappi Fine Paper North America to Suspend Operations at Muskegon Mill
March 2, 2009 by repap/PRNewswire/ — Sappi Fine Paper North America today announced that it will suspend all operations at its Muskegon Mill in Michigan, effective April 1, 2009. This suspension will result in the furlough of approximately 190 salaried and hourly Muskegon
employees. The Company is also taking other steps to cut costs,
including the permanent elimination of approximately 70 additional
salaried positions, effective immediately. These changes are necessary
in light of significantly lower global demand for coated fine paper
products, an industry wide trend that has resulted from the continued
weakening of the U.S. and global economy. Earlier this month, Sappi
Fine Paper North America posted its earnings for the first quarter of
fiscal year 2009 with a loss of US$7M.
“As a result of the economic conditions and market demand, it has
become imperative for Sappi to focus on good cash management and
running our operations as efficiently as possible,” said Mark Gardner,
Sappi Fine Paper North America President and CEO. “Reducing our
salaried workforce and suspending our operations at Muskegon Mill was
an extremely difficult decision but it was the only option that would
enable Sappi to reduce costs and remain competitive in the industry,
while continuing to meet the needs of our customers.”
Employees impacted by the suspension of operations at Muskegon will receive pay and benefits through April 30, 2009,
and will then be eligible for unemployment and other federal benefits.
For those approximately 70 employees whose positions are being
eliminated, Sappi will be providing separation benefits and job
placement services.
If market conditions improve enough over the course of the year, a
decision to restart operations at the Muskegon Mill would be made.
Current expectations are that mill production will be suspended for at
least six months during which time other mills within Sappi will make
the range of products to be offered by the Company.
Sappi Limited shareholders were informed of the management’s plans
to suspend the operations of the Muskegon Mill and restructure the
salaried workforce at the Annual General Meeting of Shareholders held
earlier today.
