Stora Enso Q3 results published

Solid quarterly performance
Stora Enso has published its Q3 2014 results. Group sales at EUR 2 514 million were EUR 39 million lower than a year ago as the decline in sales in the paper products was only partly offset by the sales from Montes del Plata Pulp Mill. Sales, excluding paper, increased 3%. Operational EBIT was EUR 210 million (EUR 184 million), a margin of 8.4% (7.2%).
Stora Enso's CEO Karl-Henrik Sundström comments the third quarter 2014 results:

"Stora Enso delivered solid performance during the third quarter. Sales, excluding the structurally declining paper business, were up by 3%. We are successful in our cost management and the operational EBIT increased 14% year-on-year. Return on capital employed increased to 9.7%, which is yet another step in the right direction. Furthermore, we have improved Net debt/EBITDA compared to a year ago from 3.1 to 2.8.

 We have taken several steps in our transformation into a customer focused renewables materials company. A key milestone was the inauguration of the pulp mill in Montes del Plata, Uruguay, and we are now ready to ramp up its production capacity. During the quarter, we also initiated the process to convert the Varkaus Mill in Finland for production of virgin-fibre-based containerboard. Moreover, we have invested in a demonstration and market development plant in the USA for the extraction and separation of highly pure sugars from biomass to be converted into differentiated biochemicals. The investment in the consumer board machine in Guangxi, China, proceeds as planned. Our non-core asset disposal programme is moving ahead with the divestment of Corenso as the most recent step. Together with innovation in our existing product range, these initiatives will play a major role in our transformation.

During the quarter, we have put a partly new Group Leader ship Team in place. There is a clearer focus, partly due to the fact that we have split Global Communications and Global Responsibility. Our focus on Responsibility is partly reflected by the section in our quarterly reporting. We are moving ahead.

When it comes to outlook, the fourth quarter 2014 sales are estimated to be roughly similar to the EUR 2 514 million in the third quarter 2014. Operational EBIT is expected to be somewhat lower than the EUR 210 million in the third quarter 2014 due to normal seasonal weakness in the Renewable Packaging and Building and Living divisions.

This was my first quarter as the CEO and I am very impressed by all our competent and committed employees who together build the future of Stora Enso. It is all about creating value for our customers, today and tomorrow."

PULPAPERnews - SUECIA - 29 octubre 2014