Stora Enso's 3Q 2016 sales at Euro 2 393 million were Euro 107 million, or 4.3% lower than a year ago mainly due to divestments and capacity closures, as the company said in the press release received by Lesprom Network.
Sales excluding the structurally declining paper business and divested Barcelona Mill increased 1.8%, primarily due to the ramp-ups at Varkaus kraftliner and Beihai consumer board mills. Paper division sales excluding restructurings remained stable. Biomaterials division was impacted by lower hardwood pulp prices
3Q 2016 operational EBIT was Euro 219 million, a decrease of Euro 27 million, including a negative impact of Euro 35 million due to the ramp-up of Beihai. The EBIT margin was 9.2%.
3Q net profit decreased to Euro 119 million from year-ago Euro 124 million.
Stora Enso's CEO Karl-Henrik Sundström said: “In the 3Q, sales increased 1.8%, excluding the structurally declining paper business and divested Barcelona Mill. This was primarily due to the ramp-ups of Varkaus kraftliner and Beihai consumer board mills. Operational EBIT was Euro 219 million compared to Euro 246 million a year ago, negatively affected with the ramp-up of Beihai by Euro 35 million. Cash flow from operations was Euro 390 million thanks to reduced working capital and proceeds from divestments. The balance sheet continued to strengthen as net debt to operational EBITDA was 2.1.”
“When it comes to outlook, sales for the 4Q 2016 are estimated to be slightly higher or slightly lower than the amount of Euro 2 393 million, and operational EBIT is expected to be in line with or somewhat lower than the Euro 219 million recorded in the 3Q 2016. The impact of the annual maintenance shutdowns is expected to be approximately Euro 35 million lower than in the 3Q 2016.”
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets.
