Stora Enso has reported a second quarter pre-tax profit of €193m, a dramatic turnaround from the €370m loss experienced a year ago.
Sales reached €2.6bn for the period, more than €600m higher than in the same period in 2009.
The results represent the best quarterly earnings since the second quarter of 2007, which Stora Enso said was down to its cost efficiency actions combined with volume recovery.
Wood products were back in operating profit at €30.1m (2009: €8.7m loss), with sales reaching €422.7m – up €107m on a year ago – due to 12% higher deliveries, significantly higher sales prices and favourable exchange rate trends.
The company described the results as strong by all measures, though it warned the outlook for the third quarter was mixed and still uncertain.
“Specifically, we foresee wood products facing an issue later in the year due to rapidly rising sawlog costs, which is why we have signalled that we are planning to take temporary curtailments as required at our sawmills,” it said.
The company said it was pleased to see Finland’s domestic timber trade return to more normal levels. “Now we must ensure there is no repeat of the excessive wood costs and high inventory levels of late 2007,” it added.
