News

Stora Enso, the Finnish paper and board manufacturer, has experienced a fall in profit for the third consecutive quarter.

Stora Enso's overall Q2 sales for the three month period to June 2008 fell by 3.9% to €2.8bn, while pre-tax profit, excluding NRI, fell by 83.2% to €32m.

Chief executive Jouko Karvinen said: "The cost inflation in the recent history of the industry, firstly in wood costs, but now in fuel and electricity costs, has decreased our profits for the third consecutive quarter."

Containerboard prices are expected to improve towards the end of the year, despite second quarter consumer board operating profits dropping by 21% year-on-year to EUR23m (£.18m).

While operating profits in the company's industrial packaging division fell by a third to €20m year-on-year in Q2 and weaker demand is predicted in Q3.

Corrugated packaging prices are expected to be stable.

In April Stora Enso said it planned to cut pulp production at its Swedish Sunila and Enocell Mills and planned further reduction of production at its Finnish sawmills.

However, the Q2 report states that these plans are "clearly not enough" and that additional capacity reduction plans will be announced in Q3.

Kavinen said they would "continue to take corrective actions as rapidly and efficiently as we can in the reality that we see ahead".