Apr 22, 2015. /Lesprom Network/. Stora Enso's 1Q 2015 sales at Euro 2 491 million were Euro 77 million lower than a year ago mainly due to declining paper demand, the permanent closure of Veitsiluoto paper machine (PM) 1 and Corbehem Mill, the divestments of Uetersen Mill in Germany and Corenso business operations, and lower volumes in Wood Products. New delivery volumes from Montes del Plata increased sales, as the company said in the press release received by Lesprom Network. 

Operational EBIT was Euro 220 million, an increase of Euro 38 million. The operational EBIT margin was 8.8%.

Stora Enso's CEO Karl-Henrik Sundström said: “Stora Enso reports solid results for the 1Q, supported by foreign exchange tailwinds. Excluding the structurally declining paper business and divested business, sales increased 3% compared to the 1Q 2014.

“Stora Enso is continuing the transformation into a renewable materials growth company. We are already benefitting from the ongoing ramp-up of the pulp mill in Montes del Plata, Uruguay. In addition, we are just about to start lignin extraction at the Sunila Mill in Finland. Later this year, we will start producing kraftliner, virgin-fibre-based containerboard, at the Varkaus Mill in Finland. During 2015, we are also increasing the liquid packaging board capacity at the Imatra Mills in Finland. In the summer, we will finalise our investment at Murow sawmill in Poland, increasing its capacity of classic sawn products.

“Next year, we will start the new production line for wooden building elements at Varkaus. Furthermore, as a major driver of our transformation, the Guangxi consumer board mill is expected to be operational in mid-2016. We have an exciting period ahead of us.

“When it comes to outlook, 2Q 2015 sales are estimated to be slightly higher than the Euro 2 491 million in the 1Q 2015. Operational EBIT is expected to be in line with the Euro 220 million recorded in the 1Q 2015. There will be maintenance work in several units during the 2Q. The negative maintenance impact is expected to be Euro 30 million more in the 2Q than in the 1Q 2015.”

Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wood and paper.