Stora Enso has reported a pre-tax profit of €226m in the third quarter compared to a loss of €549m in the same period last year.
Sales for the three months were €2.6bn, against €2.2bn in 2009, while operating profits, excluding non-recurring items and fair valuations, rose to €255m from €131m.
The company described its results as “ another strong quarterly performance” and put the improvement across its fine paper, newsprint and timber operations down to better “product mix, prices and volumes”.
Wood products deliveries were 1.3 million m³, compared to 1.2 million m³ in the third quarter last year, giving a January to September total of 3.8 million m³, against 3.6 million m³. The value of sales for the period was €424m compared to €307m in 2009, taking year-to-date turnover to €1.2bn, against €895m.
Looking forward, Stora Enso said that its various markets remain “generally favourable” . But it cautioned that pressure on variable costs, demand weaknesses in some product and maintenance stoppages will result in fourth quarter earnings being weaker than third.
The company’s wood products operations in particular were predicted to face pressure on profitability due to weakening market conditions and high raw material costs. Stora Enso said that timber demand was expected to dip towards the year end, although sales would be at a similar level in the fourth quarter to the same period last year. Timber prices were also expected to have a “greater negative impact at Group level on fourth quarter 2010 results than third quarter”.
