Stora Enso\u2019s Wood Products division experienced a mixed performance in the second quarter of 2024, characterized by ongoing challenges and some signs of seasonal improvement. Here\u2019s a detailed look at the division's financial and operational performance.<\/p>\n
Sales and demand<\/strong><\/p>\n Sales in the Wood Products division decreased by 5% year-on-year (YoY), down by EUR 22 million to EUR 414 million. This decline was primarily attributed to lower sales prices, despite an increase in volumes, particularly for sawn wood. The adjusted EBIT margin improved to 1.7% in Q2 2024 from -1.3% in Q2 2023, indicating some positive developments amidst ongoing challenges.<\/p>\n Stora Enso implemented further cost-saving measures to mitigate the impact of increased raw material costs. This strategic move helped drive an improvement in the adjusted EBIT, which increased by EUR 13 million to EUR 7 million. The company\u2019s efforts to reduce fixed and variable costs were pivotal in achieving these results.<\/p>\n Despite the overall sales decline, there was a seasonal surge in volumes of classic sawn products. However, the low building activity continued to suppress demand for Cross Laminated Timber (CLT) and Laminated Veneer Lumber (LVL). The seasonal improvement was not enough to offset the broader market trends that impacted the division. Stora Enso's adjusted ROOC (Return on Operating Capital) remained below the long-term target of over 20%, at -7.7%.<\/p>\n Financial Highlights<\/strong><\/p>\n Market Development and Outlook<\/strong><\/p>\n Looking ahead, Stora Enso anticipates a seasonal decline in sales and volumes in Q3 due to the holiday season. Building permits are expected to fall below 2023 levels, with a slight decline anticipated in Western Europe. Additionally, wood costs are forecasted to remain elevated, continuing to pressure margins.<\/p>\n The company remains cautiously optimistic about a gradual market recovery in 2024, supported by initiatives to increase profitability. These initiatives have positively influenced earnings trends over the past three quarters and contributed to a reduction in the Group\u2019s net debt to EBITDA ratio.<\/p>","protected":false},"excerpt":{"rendered":" Stora Enso\u2019s Wood Products division experienced a mixed performance in the second quarter of 2024, characterized by ongoing challenges and some signs of seasonal improvement. Here\u2019s a detailed look at the division’s financial and operational performance. Sales and demand Sales … Continue reading \n