Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stora Enso sees packaging demand staying strong beyond pandemic

Stock Markets Jul 21, 2021 06:28AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The Stora Enso company logo is seen near a packaging mill in Riga, Latvia September 18, 2012. REUTERS/Ints Kalnins/File Photo

By Essi Lehto

HELSINKI (Reuters) - Finnish forestry firm Stora Enso (OTC:SEOAY) on Wednesday reported stronger than expected second-quarter core earnings and revenue as higher prices helped to drive strong profit growth in pulp, packaging and wood products.

Chief Financial Officer Seppo Parvi told Reuters he sees the strong demand continuing beyond the coronavirus pandemic that boosted house renovations, takeaway eating and online shopping.

"We see the demand continuing strong in packaging, wood products and construction even after the pandemic and the European Union forest strategy and climate package only support that," Parvi told Reuters, referring to the EU climate plan announced last week.

Stora's shares rose nearly 3% early on Wednesday but later in the session they were down 0.30%.

"The Q2 numbers were clearly above estimates due to the very strong development in these cyclical segments. It is safe to say this will not go on forever," analyst Antti Viljakainen from Inderes said, adding that pulp prices in China have already declined somewhat.

"The stock market is now weighing up how much the strong result will indicate what will happen in the coming quarters," Viljakainen told Reuters.

Stora said its second-quarter operating profit rose to 364 million euros ($428.32 million) from 178 million a year ago, beating the 302.2-million-euro estimate of 9 analysts polled by Refinitiv.

Stora's sales rose 22.6% to 2.59 billion euros, with its biomaterials (pulp) unit up 57%, wood products 37.7% and both packaging material units up more than 20%.

The analysts had estimated the revenue to be 2.35 billion euros.

Stora's paper business sales remained stable year-on-year but it made a loss of 49 million euros.

Parvi told Reuters that Stora sees the situation improving after closing paper mills in Finland and Sweden and finalising the sale of a third mill in Germany by the end of the ongoing third quarter.

The company also said its Oulu mill in northern Finland, which was converted to make packaging cardboard instead of paper, had broken even in the third quarter, three quarters ahead of Stora's initial expectation.

($1 = 0.8498 euros)

Stora Enso sees packaging demand staying strong beyond pandemic
 

Related Articles

Wall Street opens lower on mounting growth worries
Wall Street opens lower on mounting growth worries By Reuters - Jun 30, 2022 3

(Reuters) - Wall Street's main indexes opened lower on Thursday, the last day of a dismal first-half of the year, on worries that central banks determined to tame inflation will...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email