Paper maker Stora Enso warns of poor Q3

posted: 42 DAYS 9 HOURS AGO

Text SizeAAA

HELSINKI -Paper maker Stora Enso Oyj said Friday that third-quarter operating profit will be hit by a euro655 million ($975 million) charge due to provisions and write-downs on the values of assets.

The Finnish-Swedish company, which has been struggling with dwindling revenue, in August announced 1,100 layoffs, production cuts and mill closures as the global economic downturn continued to plague the forest products industry.

It had a second-quarter net loss of euro368 million, compared with a profit a year earlier, and a 24 percent drop in net sales to euro2.2 billion.

Stora Enso is one of the world's largest forest product companies making magazine paper, newsprint, fine paper, pulp and packaging boards. It employs 29,000 people.

Earlier this year, it forecast a weak third quarter and warned of further cutbacks. A year ago, Stora Enso and the world's largest magazine paper maker, UPM-Kymmene Corp., warned they would lay off thousands, close mills and cut output to reduce costs and overcapacity in the industry.

Nordic paper companies plunged into losses at the end of last year because of slumping demand from customers such as newspapers and magazines, and this year total production in the forest sector has fallen by some 30 percent.

Stora Enso is due to release its third-quarter earnings report on Oct. 22. UPM-Kymmene is set to announce its results on Oct. 29.

—

On the Net:

http://www.storaenso.com

2009-10-16 06:14:35