Stora Enso profits down 20% to Euro 204 million

Operating profit at €204 million excluding non-recurring items and fair valuations was €51 million lower than a year ago. This represents an operating margin of 7.5% (9.7%).

January-September 2011 Results (compared with January-September 2010):

Sales increased by €672 million year-on-year to €8 283 million. Operating profit excluding nonrecurring items and fair valuations increased by €93 million to €681 million. Significantly higher sales prices in local currencies and a favourable product mix more than compensated for higher variable costs and unfavourable exchange rate trends.

Q3/2011 Results (compared with Q2/2011)

Sales were €78 million down on the previous quarter at €2 739 million. Operating profit excluding non-recurring items and fair valuations was €24 million lower than in the previous quarter at €204 million. Reductions in fixed costs could not compensate for significantly higher production curtailments to manage inventory.

Cash flow from operations was strong at €362 (€207) million due to working capital management. Cash flow after investing activities was €282 (€122) million.

Prices are expected to be stable for consumer board and lower for industrial packaging. In Europe prices are forecast to be stable for newsprint, magazine paper and coated fine paper, slightly lower for uncoated fine paper and lower for wood products.

Follow hyperlink below for a table of results

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Posted Date: 25th Oct 2011