Stora Enso: Wood Products division reports all-time high results

Stora Enso: Wood Products division reports all-time high results

Forest products company Stora Enso's operational earnings rose to 410 million euros (478 million U.S. dollars) before interest and taxes (EBIT) in July-September, up from 175 million euros a year ago. Net sales increased by 23.9 percent to 2577 million euros.

"I am delighted to see us deliver yet another robust quarterly performance," said CEO Annica Bresky in a press release on Wednesday.

The company said that the improvement in earnings is due to higher prices, and higher sales volumes. Net sales of packaging materials and wood products units reached an all-time high.

Stora Enso announced plans to invest 97 million euros in expanding cardboard production in Skoghall in Sweden. It will also begin investigating the feasibility of converting a paper production line in Oulu, Finland, into a cardboard production line. Bresky said there had been strong growth in packaging needs.

Wood Products division reports an all-time high result

Stora Enso's Wood Products sales increased by 48%, or EUR 162 million to an all-time high level of EUR 503 million. Record high prices continued to drive topline growth despite slightly lower classic sawn timber deliveries.

Operational EBIT increased by EUR 85 million to an all-time high level of EUR 123 million. Extraordinary high profitability was driven by record prices, which more than offset clearly higher raw material costs and higher production-related costs.

Stora Enso’s focus on the mass timber construction business continues successfully. Wood products such as cross laminated timber (CLT), laminated veneer lumber (LVL), beams, rib panels and digital services were delivered to approximately 600 projects during the quarter. There is a 40% increase in average project size.



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