Deutsche Bank Reports Summaries
080509 Deutsche Bank Report - Dr. Paper's Weekly Wrap Up
Deutsche Bank - Equity Research
* More of the same. Weak demand & higher input costs
squeezed 1Q earnings for AbitibiBowater, Domtar and
Louisiana-Pacific. We reduced our price targets for ABH (from
$16 to $10), UFS (from $14 to $10) and LPX (from $16 to $12).
* 560K/tons of linerboard capacity were idled last
weekend. A deadly explosion at an IP mill in Vicksburg, MS
could close the mill for months. Vicksburg represents about
2% of NA linerboard capacity. The outage raises the
probability of a late summer price
increase. US regulatory approval for IP's acq'n of
Weyerhaeusers' pkg business is also constructive.
* 820K/mtons of pulp capacity idled. Pope & Talbot was
forced to idle 2 mills in British Columbia and 1 in Oregon after a
deal to sell the mills to Indonesia's Sinar Mas Group collapsed.
Pope & Talbot has been operating under bankruptcy protection
since late last year.