HELSINKI, April 20,
2023 /PRNewswire/ -- Stora Enso provided
guidance in connection with its financial statement release 2022,
published on 31 January 2023, that
its full-year 2023 operational EBIT was expected to be lower than
for the full-year 2022 (EUR 1,891
million).
Due to materially lower earnings forecasts for the full year
results 2023, Stora Enso's new guidance is that the full-year 2023
operational EBIT is expected to be significantly lower than for the
full-year 2022 (EUR 1,891
million).
The change in earnings expectations for the full year 2023 is a
result of the worsening market outlook which accelerated towards
the latter part of the first quarter. Cost pressures and market
uncertainties are expected to be significantly more challenging in
2023 than in 2022, weighing on our results and lowering the
short-term visibility this year. This market situation will
continue to weaken consumer confidence resulting in lower private
consumption impacting all our divisions. Compared to 2022, Group
margins are expected to be adversely impacted by increasing costs,
particularly in relation to energy, wood, and chemicals.
The whole packaging market is currently weakening. Especially
containerboard demand is expected to remain weak but also consumer
board is showing signs of weakening, with the exception for liquid
packaging board.
The construction sector remains challenging with a lower number
of issued building permits and new housing starts. This is expected
to have a temporary impact on demand for the Wood Products division
this year. In addition to higher pulpwood cost, a weakening global
pulp market is expected to weigh on the Biomaterials division.
Availability for pulpwood remains tight.
To manage volatility, variable costs are continually reviewed,
and preparatory actions are taken to respond to fluctuations in
demand with reinforced cost control actions. Other measures such as
pricing, flexibility in product mix, capacity and inventory
management, and sourcing and logistics have been put in place. In
Finland, Stora Enso has completed
negotiations on potential furloughs at its divisions' production
sites. Capacity adjustment activities are in place to respond to
fluctuations in demand.
Operationally, the focus on decentralisation continues together
with reduction of overhead costs. Restrictive capital expenditure
and working capital management to safeguard cash flow and to secure
a solid balance sheet are in place. The guidance ranges are shown
in the table below:
Guidance range full year
|
Significantly
higher
|
+50% and
above
|
|
Higher
|
More than +15%, but
less than +50%
|
|
In line with
|
+/-15%
|
|
Lower
|
More than -15%, but
less than -50%
|
|
Significantly
lower
|
-50% and
below
|
Stora Enso will publish its January–March 2023 Interim Report on
Tuesday 25 April 2023 at
approximately 8:30 EEST (7:30 CEST).
For further information, please contact:
Carl Norell
Press officer
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
Part of the global bioeconomy, Stora Enso is a leading provider
of renewable products in packaging, biomaterials and wooden
construction, and one of the largest private forest owners in the
world. We believe that everything that is made from fossil-based
materials today can be made from a tree tomorrow. Stora Enso has
approximately 21,000 employees and our sales in 2022 were
EUR 11.7 billion. Stora Enso shares
are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq
Stockholm AB (STE A, STE R). In addition, the shares are traded in
the USA as ADRs (SEOAY).
storaenso.com/investors
STORA ENSO OYJ
For further information, please contact:
Carl Norell
Press officer
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
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