Operating profits at Stora Enso’s wood products division were nearly 200% up on the previous quarter to €35.2m (1Q 2011: €11.8m).
Sales increased by 13.6% on the previous quarter to €465.4m, with demand significantly stronger and prices slightly higher than the first quarter.
Stora Enso said the higher sales were offset by higher wood costs. Its wood sensitivity analysis for 2011 show that a 10% increase in wood raw material prices would have a €232m impact on operating profits for the year.
Wood product deliveries totalled 1.42 million m³ in the second quarter, up 14.9% on the first quarter (1.23 million m³) and down 2.3% on a year ago.
Group-wide Stora Enso recorded a total net profit €136m down from €155.9m in the first quarter and €159.9 a year ago.
“On the one side, the market environment and our own efforts allowed us to improve pricing on a broad scale year-on-year,” said Stora Enso CEO Jouko Karvinen.
“On the other side, cost inflation offset a significant part of that result, so we could improve our operating profit only marginally.”
The company is also investing €21m in building a combined heat and power plant at its Zdírec sawmill in the Czech Republic.
Zdírec’s production includes value-added engineered products such as KVH.
“The production and sale of renewable energy to local electricity suppliers will improve the mill’s profitability,” said the company.