Stora Enso has warned that its second-quarter operating profits will be about “half the level” achieved in the first quarter.
The company said the decrease, which will be formally announced on July 24, is due to weak economic conditions in Europe, leading to lower profit margins for overseas exports from its European mills. Direct and indirect effects from the lower value of the US dollar and continuing overcapacity in some paper grades were also cited as reasons.
The company’s North American operations have performed weakly because of higher energy costs and lower production volumes, while there has only been limited success in increasing product prices.
Stora Enso has also experienced costs associated with the annual midsummer holiday shutdowns in the Nordic region, especially Finland.
