logo
Plus   Neg
Share
Email
Comment

Stora Enso Q1 Profit Plunges - Quick Facts

Stora Enso Oyj (SEOAY.PK) reported first quarter net profit attributable to owners of 72.9 million euros or 0.09 euros per share, lower than 155.6 million euros or 0.20 euros per share a year ago.

Net profit, excluding non-recurring items, was 80.2 million euros, down from 175.3 million euros a year ago. Net profit per share, excluding non-recurring items, was 0.10 euros versus 0.22 euros last year.

Operational EBIT decreased year-over-year to 147 million euros, mainly due to lower prices in Printing and Reading and Biomaterials, and lower volumes in Renewable Packaging.

Sales declined to 2.67 billion euros from 2.73 billion euros in the prior-year quarter.

CEO Jouko Karvinen commented,

"Our first quarter earnings performance was overall in line with our guidance in February. However, the return on capital employed was below cost of capital, which shows the never-ending need to improve our cost position and operational performance. In addition to the expected price pressures and variable cost reductions only slowly improving our profit, we also had operational issues in several of our mills, for instance the Nordic mills of the Biomaterials Business Area. The good thing is that we can tackle these challenges ourselves, instead of just waiting for external conditions to improve.."

Moving ahead, in the second quarter of 2012, the company forecasts group sales to be slightly higher and operational EBIT approximately in the range of the first quarter of 2012 as there will be maintenance stoppages in several European mills and the benefits of improving variable costs are expected to become only slowly apparent in the results. The main maintenance impact is anticipated to be in the Biomaterials Business Area.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
J.M. Smucker Co. Tuesday announced a voluntary recall of some shipments of dog food, including Gravy Train, Kibbles 'N Bits, Ol' Roy, and Skippy canned/wet dog food, after finding "extremely low levels" of pentobarbital. Pentobarbital is a barbiturate drug that is most commonly used in animals as... Amazon.com Inc. (AMZN) Tuesday announced that its Prime members can earn 5% back on Whole Foods Market purchases when using Amazon Prime Rewards Visa Card. With this latest discount offer, Amazon Prime members who shop using the Amazon Prime Rewards Visa Card now enjoy 5 percent back on Whole Foods... Lucky Charms' new marshmallow - the magical unicorn is ready to attract kids and cereal lovers. This is the first marshmallow to be introduced in the last ten years.
comments powered by Disqus
Follow RTT