“Another strong earnings performance - time to build our future”

“The third quarter was yet another proof point of Stora Enso in action, determined to build a business that creates value for our shareholders. A very significant part of our earnings improvement again came through early cost reductions and active management of both pricing and customer mix. Only this year we are permanently removing about 700 000 tonnes of paper capacity or four machines in Europe, a demonstration of our commitment to do what it takes to improve our cost position and productivity. The recent quarters should also prove that our actions are starting to pay off.

“We are also continuing to build the future of Stora Enso in line with our strategy of fibre-based packaging and plantation-based pulp in growth markets, as well as a focussed competitive paper portfolio. We have been tested in unforeseen ways during the past few years, and now we are coming out stronger through our own actions. That is a good starting point for the next part of our journey.

“As a concrete sign of the next part of our journey, we have today announced the acquisition of the majority shareholding in Chinese packaging company Inpac International, which is strategically a perfect fit for our portfolio. The acquisition offers us an excellent opportunity to increase our presence in China and India, the two fastest-growing consumer packaging markets in the world.

“Looking into the fourth quarter, the market outlook remains generally favourable, but pressure on variable costs, seasonal demand weakness in some products and maintenance stoppages are expected to decrease our fourth quarter earnings quarter-on-quarter. As before, these challenges will only make us strive harder to improve the things we can influence ourselves.”

For further information, please contact:
Jouko Karvinen, CEO, tel. +358 2046 21410
Lauri Peltola, Head of Communications and Global Responsibility, tel. +358 2046 21380
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242