Stora Enso is implementing further mill curtailments after reporting a third quarter pre-tax loss of €17.3m and a significantly weaker market for wood products.
The loss compares to profits of €150.1m in the previous quarter. Sales reached €2.7bn (2010: €2.62bn).
“It is clear that going into the fourth quarter our customers, as well as ourselves, will reduce inventories and therefore we will further step up the manufacturing curtailments which we already increased significantly in the third quarter,” the company said.
Operating profits in the wood products division fell to €9.8m from €25.2m a year earlier and €35.2m in the preceding quarter.
Sales were marginally down to €414m.
As a result, Stora Enso is moving forward the closure of Koppadrofs sawmill in Sweden to this month, instead of the end of 2011.
Restructuring part of the further processing operations at Honkalahti sawmill in Finland will also take place in the fourth quarter.
“There is pressure for further curtailments at several sites in Europe subject to product and raw material development,” the company said.
