Stora Enso Oyj (SEOAY.PK), a Finnish pulp and paper manufacturer, reported Friday that its second-quarter net profit climbed 49 percent to 213 million euros from 143 million euros.
Earnings per share were 0.28 euro, up from 0.19 euro a year ago. Earnings per share excluding IAC were 0.31 euro.
Operational EBIT increased 49.4% to 327 million euros, despite temporary headwinds in wood sourcing and Consumer Board production. The operational EBIT margin was 12.3%, up from 8.7% last year.
Sales increased 5.4% to 2.66 billion euros from 2.53 billion euros last year, despite wood shortage, primarily due to favorable prices and active product mix management. Excluding the divested Puumerkki, sales increased 7%.
Looking ahead for the third quarter, sales are estimated to be similar to previous second quarter’s 2.664 billion euros, and operational EBIT is expected to be in line with the 327 million euros recorded in the second quarter of 2018.
The impact of annual maintenance shutdowns is expected to be approximately 5 million euros lower than in the second quarter of 2018.
Separately, Stora Enso announced its investment of 25 million euros to boost green energy generation at Maxau Mill. The company said it has decided to install a new steam turbine with a closed-loop cooling system and additional biomass storage at its mill in Maxau, Germany.
The implementation of the project is scheduled to start during the third quarter of 2018 with completion in 2020.
Stora Enso shares were trading at 15.10 euros, down 8.76%.
by RTTNews Staff Writer
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