Stora Enso’s 1Q 2017 sales increased Euro 52 million, or 2.1% to Euro 2 497 million despite decreasing paper demand and divestments of Kabel and Arapoti mills, and the Suzhou Mill site divestment, as the company said in the press release received by Lesprom Network.
Sales increased mainly because of the ramp-up of Beihai consumer board mill in China, Varkaus kraftliner mill and LVL (laminated veneer lumber) line in Finland and Murów sawmill in Poland, and also due to overall stronger volumes in all divisions, except Paper.
Operational EBIT was Euro 33 million lower at Euro 215 million, compared to a year ago. The negative impact of the ramp-up of Beihai Mill decreased operational EBIT by Euro 12 million, including Euro 7.5 million provision due to a turbine damage. The operational EBIT margin was 8.6%.
Lower sales price in local currencies decreased operational EBIT by Euro 21 million, mainly due to lower hardwood pulp and paper prices. Higher volumes in all divisions, excluding divestments, improved operational EBIT by Euro 30 million and lower variable costs by Euro 13 million.
The Euro 50 million profit improvement programme is proceeding according to plan.
Stora Enso's CEO Karl-Henrik Sundström comments on the 1Q 2017 results: “Year 2017 had a promising start and our transformation into a renewable materials growth company is progressing well. I am pleased that our sales have increased for the first time since 2012. Excluding the paper business, sales increased 9.7%, primarily due to the ramp-ups of Beihai consumer board, Murów and Varkaus (board and LVL) mills.”
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets.
