Stora Enso: Wood products EBIT up by almost 32%

09.11.2017 − 

In the third quarter, the wood products business division of Stora Enso benefited from increased sales volumes and slightly higher sales prices. At €415m, turnover of the division rose by 7.8% vis à vis the comparative quarter of the preceding year. Taking the sales activities in the Baltic states into account, which were relocated into the others division in the second quarter, turnover increased by 10.5%. The volume of lumber and timber products sold in the period covered by the report increased by 5.6% to 1.169m m³.

Somewhat higher procurement costs for raw materials were compensated in part by the increase in sales figures and the higher prices. The EBITDA improved by 23.3% to €37m and the EBIT rose by almost one third to €29m which is also to the highest value of the past ten years. The EBIT margin increased to 8.9%.

The start-up of LVL production at the Varkaus plant in Finland, which commenced in June 2016, is still continuing. The group expects to be able to produce in full-load operation by mid-2018. To further increase internal added value, Stora Enso also announced an investment of €45m in the construction of a cross-laminated timber plant at the Gruvön location in Sweden at the start of the third quarter. This plant, with an annual capacity of some 100,000m³, is to be constructed by the beginning of 2019.

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