logo
Share SHARE
FONT-SIZE Plus   Neg

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
Even after two years of thoroughly searching across the Indian Ocean, using modern technologies and devices, there is no clue about the Malaysian airline that vanished on March 8, 2014. Internet access is growing worldwide, but there is still a long way to go before the entire world is completely wired, a study from the Pew Research Center has found. The study also noted that men have greater access to the Internet than women in many nations. Backtracking on its early announcements on digital privacy, WhatsApp is planning to share member information, phone numbers and analytical data with Facebook, to make revenue from the platform.
comments powered by Disqus
Follow RTT