Stora Enso and UPM-Kymmene have both reduced their outlook for 2008, with rising costs and weak markets putting pressure on results.
UPM had predicted that its full-year operative profitability would match that of 2007, but has reassessed its situation due to the costs of wood fibre and weak results in its sawn timber business.
Stora Enso has also reduced its financial forecast for the rest of the year, raising its estimated annual unit cost inflation from 2.5-3% to 4%.
The company is expecting profits for the second quarter to be down by 50% year-on-year as its wood product division performs poorly due to the market, with rising oil prices and negative foreign currency exchange rates also having an effect.
Stora added that it was reviewing its plans for production curtailments and permanent closures in the second half of 2008, with its dependence on natural gas “even more critical for the group”.
