Stora Enso reports €219m Q3 operational earnings
29 November 2016Finland-based forest products manufacturer Stora Enso has reported operational earnings before interest and tax of €219m compared with a year ago (2015: €246m).
The reduction was mainly due to a €35m negative impact from the ramp-up of the Beihai consumer board mill in China.
The group’s sales were €2.39bn for the period, a decrease of 4.3% from the same time last year.
Q3 sales compared to Q2 decreased 5.3% mainly due to usual seasonality in wood products.
On the wood products and engineered timber front, Stora Enso's CEO Karl-Henrik Sundström revealed that the new production line for wooden building components (LVL) at Varkaus Mill is ramping up and product certification is ongoing. Full production is expected in mid-2018.
The group also said wooden buildings were on the rise, with Australia’s first timber office building being built with its cross-laminated timber (CLT) in Sydney. The major structural components of the six-storey office are made from more than 2,000m3 of Stora Enso's CLT.
“Another initiative to meet growing urban construction needs is the modernisation of the sawmill in Murów,” he said.
“As previously announced, the modernisation will increase yearly capacity from 70,000m3 to 400,000m3.”
The mill was inaugurated in September at an event attended by 200 customers.
