Stora Enso CEO Jouko Karvinen comments on third quarter 2013 results announced today
October 22 2013 - 5:07AM
OTC Markets
Stora Enso CEO Jouko Karvinen comments on third
quarter 2013 results announced
today
?Strong performance in Packaging, European paper markets
struggle?
STORA ENSO OYJ STOCK EXCHANGE RELEASE 22 OCTOBER 2013 at 13.01
EET
?The third quarter ended with the operational profitability just
slightly up year on year. Nevertheless, it was a very different
quarter than a year ago, with 5% lower sales for the Group and
significantly rebalanced contributions from the segments. However,
most importantly lower sales were compensated by lower fixed and
variable costs. Segmentally, there was a strong performance in
Renewable Packaging and continued cost-driven turnaround in
Building and Living. The good news was balanced by Printing and Reading
continuing to contend with a weak market environment, and
Biomaterials facing exchange-rate-related challenges as well as
one-time costs from Veracel. In summary, it was a better than
expected quarter that underlined the importance of our cost
focus.
?The timetable for completing our joint-venture pulp mill Montes
del Plata in Uruguay was revised during the quarter after the main
technology contractors informed the company that they could not
complete their work on schedule. That unexpected development was
balanced by the view of the owners of the mill that the mill
continues to be a good high-return investment and the delays can
only lead to an even stronger effort to complete it well and ramp
it up starting in early 2014.
?After announcing the revised two-phase timetable of our China
investment, we have gradually started to initiate the mill site
works. The target schedule for starting up the board machine
remains in the beginning of 2016.
?The fourth quarter outlook for operational EBIT is clearly lower
than a year ago, as already announced on 9 October. This is
because, in contrast to the other two segments, the two strongly
performing segments Renewable Packaging and Building and Living,
which together generate the majority of the Group?s earnings, both
have a seasonal and market-driven pattern. In practical terms, the
last quarter in these segments is clearly weaker than the first
three quarters of the year, thus making the Group?s earnings
especially seasonal this year and also weaker during the last
quarter.
?With all the challenges around us, from European paper markets to
finally completing and ramping up Montes del Plata, we at Stora
Enso believe that improving the things we can control ? from fixed
cost reduction to quality of completing and commissioning the new
projects in a focused and responsible manner ? is more important
than ever.?
For further information, please
contact:
Lauri Peltola, EVP, Global Identity, tel.
+358 2046 21380
www.storaenso.com
www.storaenso.com/investors
Stora Enso is the global rethinker of the paper,
biomaterials, wood products and packaging industry.
We always rethink the old and expand to the new to
offer our customers innovative solutions based on renewable
materials. Stora Enso employs some 28 000 people worldwide, and our
sales in 2012 amounted to EUR 10.8 billion. Stora Enso shares are
listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A,
STE R). In addition, the shares are traded in the USA as ADRs
(SEOAY) in the International OTCQX over-the-counter
market.
STORA ENSO OYJ
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