Stora Enso reports "remarkable" earnings improvement22 April 2010
Stora Enso’s first-quarter results show a “remarkable” improvement, with profits before tax of €117.9m (2009: €48.1m loss).
Group CEO Jouko Karvinen said the results included a recovery for the company’s wood products business, which posted operating profits of €5.4m (2009: €23.7m loss).
Overall sales increased to €2.29bn (2009: €2.13bn).
He said the results were even more impressive considering €12m costs incurred by the Finnish stevedoring strike.
Stora Enso has also announced it will keep the Varkaus sawmill open.
Last year the company said the whole Varkaus site was under threat of permanent closure unless a recovery in the office paper market was experienced. This market has since improved, leading to the new commitment.
But Stora Enso is selling its integrated mills in Kotka, including a sawmill, to private equity firm OpenGate Capital. The transaction, which includes a laminating paper operation in Malaysia, will be for €24m.
The divestment, to be finalised during the second quarter, will reduce Stora Enso’s sawnwood production capacity by 230,000m³.