Industry Reports

Deutsche Bank Reports Summaries

071005 Deutsche Bank Report - Dr. Paper's Weekly Wrap Up (10/5/07)

Deutsche Bank - Equity Research

* Rising Euro will likely squeeze European paper mills. DB's European analyst, Mathias Carlson, downgraded many stocks, including UPM and Stora Enso. Mathias is focused on negative trade flows and probability of weaker-than-expected price trends.

* International Paper (IP) finalized JV with Russia's Ilim Pulp (1.5MM mtons of mkt pulp). Deal cost = $620MM, $220MM more than original estimate. However, the deal gives IP more exposure to China, where NBSK prices are up $70/mton y/y.

* Packaging news. Bemis warned about weaker-than-expected H2. US flexible vol's remain soft. With metals prices booming, aluminum co's are exiting packaging. Alcoa announced plans to sell $3.2B pkg business. Alcan is doing same as part of Rio Tinto deal.