Stora Enso wood product sales dip 16% in Q221 July 2020
Stora Enso’s wood product sales dipped by 16% in Q2, 2020 to €347m mainly due to lower deliveries negatively impacted by the Covid-19 pandemic and lower classic sawn prices.
The company said structural changes at the Pfarrkirchen sawmill in Germany and at the Uimaharju and Kitee sawmills in Finland reduced sales by €36m.
Operational earnings before interest and tax decreased by €9m to €26m, with lower sales prices only partly being offset by lower wood costs and fixed costs, supported by the profit protection programme actions.
Demand during Q2 was described as “significantly weaker” compared to Q2, 2019.
Wood product deliveries in Q2 were down by 9% on a year ago to 1.174 million m3.
“We consider the second quarter result solid in the current circumstances,” said Stora Enso’s president and CEO Annica Bresky.
“This was driven by strong performances in the Packaging Materials and Forest divisions, and Wood Products division delivering a better result than expected.”
Ms Bresky said it was positive to see that the EU’s recovery strategy for the pandemic involves investments in green and digital solutions.
“There is a lot of power in this initiative and in the ambition to reduce climate impact. At Stora Enso, we offer renewable solutions to support the EU in this global transition. The Covid-19 new normal should be a more sustainable normal. The future grows in the forest.”