Stora Enso wood products division sees profits rise in 20208 February 2021
Wood products giant Stora Enso saw a 4.6% growth in its operational earnings (EBITDA) in 2020 to €160m (2019: €153m).
Sales were down 11.7% in 2020, while product deliveries were down 7.3% to 4.4 million m3.
Annica Bresky, Stora Enso president and CEO, said the company’s wood products division delivered the second best Q4 results in the company’s history – with operational EBITDA of €44m (2019 Q4: €26m) – a 69% improvement.
Sales decreased by 4% to €360m in Q4, 2020 (compared to Q4, 2019), with the structural changes at the Pfarrkirchen mill in Germany and at the Uimaharju and Kitee sawmills in Finland reducing sales by €23m.
This was only partly offset by slightly better prices and mix for classic sawn, laminated veneer lumber (LVL) and US sales.
Higher sales prices and good cost control, supported by the profit protection programme, improved profitability.
Stora Enso's focus on the mass timber construction business continues, despite the volatile construction outlook and expected project delays. There were more than 650 projects with CLT and LVL in Q4, covering a wide range for large and smaller buildings delivered to 21 countries around the world.
Meanwhile, the company is also putting increased emphasis on its lignin business.
“Lignin is one of our key innovation areas for delivering growth in new applications, such as energy storage, binders and carbon fibre,” added Ms Bresky.
“As the largest producer in the world, we are investing €14m to build a granulation and packing plant for lignin.”