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Stora Enso Q2 Net Profit Drops

Stora Enso Oyj (SEOAY.PK), a Finnish pulp and paper manufacturer, reported that its second-quarter net profit dropped to 52 million euros from 213 million euros last year. Earnings per share decreased to 0.08 euros from 0.28 euros in the prior year.

Earnings per share excluding IAC declined to 0.22 euros from 0.31 euros in the previous year.

Sales decreased by 2.1% to 2.608 billion euros from 2.664 billion euros last year.

For the third-quarter, the company expects operational EBIT to be in the range of 200 million euros - 280 million euros. During the third quarter, there will be annual maintenance shutdown at the Beihai, Imatra, Heinola, Ostroleka, Enocell and Veitsiluoto mills. It is expected that the total maintenance impact will be on the same level as in third-quarter of 2018 and 30 million euros more than in the third-quarter of 2019.

Separately, Stora Enso noted that it is investing 10 million euros to build a pilot facility for producing bio-based carbon materials based on lignin. Wood-based carbon can be utilised as a crucial component in batteries typically used in consumer electronics, the automotive industry and large-scale energy storage systems. The pilot plant will be located at Stora Enso's Sunila Mill in Finland.

In a separate press release, Stora Enso said it initiated feasibility studies for a possible cross laminated timber unit in connection with its Ždírec mill in the Czech Republic and a new construction beam unit to be located at the Ybbs mill in Austria.

Stora Enso also plans to consolidate production to increase focus on efficiency and to streamline the asset base.

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