The Building and Living division (which also includes solid biofuels) recorded a €28.8m profit, down from €62.8m in 2011. New restructuring is designed to reduce costs and increase productivity in a bid to save €30m.
“In the Building and Living business area we do not expect any significant improvement to the depressed European construction activity or high raw material costs,” said Stora Enso CEO Jouko Karvinen.
He admitted further restructuring would be difficult to accept for employees, but he said continued poor market conditions “must be addressed”.
With the publication of the company’s annual results, Stora Enso said the Building and Living divisional head Hannu Kasurinen will leave his role once a successor has been appointed.
Wood product deliveries were down 6.3% to 5.07 million m3, but the company is still comfortably the largest sawmiller in Europe.
The fourth quarter of 2012 was the first full quarter when the sawn timber trading company RETS Timber Oy Ltd was consolidated as a subsidiary within Stora Enso’s Building and Living division.
The company said pressure in raw material markets persisted in 2012, with decreased raw material availability, especially in Central Europe, increasing saw log costs and hitting profits.
Demand in the fourth quarter of 2012 was deemed slightly weaker than the previous quarter, while prices were stable.
Group-wide, Stora Enso reported sales of €10.8bn in 2012, compared to €10.96bn a year ago. Profits before tax were up to €481.7m from €420.9m in 2011.
