Stora Enso returns to profit

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7 February 2007 — Helsinki (FIN): Stora Enso returned to net profit of €264.8 million during Q4 ($344.6 million), compared to a loss of €239.4 million in Q4 2005.

The return to profit, which beat analysts’ expectations of €259 million, has been attributed to better than expected cost savings.

 

Q4 revenue increased to €3.73 billion from €3.64 billion a year earlier. Operating profit for the period was €246 million, recovering from a loss of €309.9 million in Q3 2005.

 

In Europe, market demand for the Group’s products was generally stronger than it was a year earlier.

 

Demand was said to be stronger in newsprint and uncoated magazine paper, but weaker in coated magazine paper. Prices were higher in newsprint but remained virtually unchanged in magazine paper.

 

Market demand was reported to be stronger than it was last year in coated fine paper but weaker in uncoated fine paper. Uncoated fine paper prices rose slightly, while coated fine paper prices remained stable.

 

Demand for packaging boards was steady and prices were unchanged. In wood products, demand and prices were higher than a year ago.