Stora Enso faces persistent hurdles in the wood product division

Posted on April 29, 2024   |  

Stora Enso reports ongoing challenges in its wood products division, citing factors such as low demand, prices, volumes, and high wood costs.

According to the company's Q1 interim report, a seasonal increase in demand is anticipated in the classic sawn market during Q2, despite continued sluggishness in the construction sector.

Stora Enso recorded an adjusted EBIT of €156m in Q1, representing a 33% decrease from the previous year, with sales decreasing by 20% to €2.16bn.

The company's profit improvement program, initiated in Q1, has shown positive progress, leading to an upward revision of the annual profit improvement target to €120m from the initial €80m. This increase is driven by additional fixed cost reductions.

Notably, the profit improvement program does not involve site closures but may result in the reduction of approximately 1,000 employees.