Stora Enso's Half-year Financial Report January-June 2018
Comunicato Precedente
Comunicato Successivo
Q2/2018 (year-on-year)
Q1–Q2/2018 (year-on-year)
Outlook
Q3/2018 sales are estimated to be similar to the amount of EUR 2 664 million recorded in the second quarter of 2018, and operational EBIT is expected to be in line with the
EUR 327 million recorded in the second quarter of 2018.
The impact of annual maintenance shutdowns is expected to be approximately
EUR 5 million lower than in the second quarter of 2018. The second quarter maintenance impact was
EUR 15 million higher than initially forecast. The Nordic wood supply situation is expected to continue tight, due to the risk of forest fires affecting harvesting conditions. The wood supply impact is expected to be approximately
EUR 10 million negative in the third quarter of 2018. These impacts are included in the above outlook.
Key figures
EUR million
2017
045
1587
1004
10.0%
904
826
742
614
2253
11.9%
0.89
0.79
1.4
206
Stora Enso's CEO Karl-Henrik Sundström comments on the second quarter 2018 results:
"Six consecutive quarters of sales growth prove that we have reached a level of sustainable profitable growth. Sales increased by more than 5% during the quarter and if we exclude the divested Puumerkki, the increase was 7%. This is primarily due to favourable prices and our management of the product mix. I am proud of the strong increase in operational EBIT of 50% to
EUR 327 million, despite the temporary headwinds that we have had during the quarter. Production related issues, higher maintenance and tight wood supply had negative impacts. If we look specifically at Consumer Board, even with headwinds in production effecting volumes substantially, the division reached all-time high in sales. All in all, we still have untapped potential to grab! The Packaging Solutions division showed continued strong performance, Biomaterials delivered all-time high sales and profitability, Wood Products return on capital was at record level and the Paper division presented significant profitability improvements. I see great performance across the board. Furthermore, I am pleased that our operational ROCE, close to 16%, was above our strategic target for the fourth consecutive quarter. Moreover, we continue to strengthen our balance sheet and net debt was reduced by more than 10%. All in all, we have delivered records or solid performance in all our divisions. Our transformation projects are progressing well. The ramp-up of the LVL production at Varkaus Mill was completed during the quarter and the investment to a new cross laminated timber unit at Gruvön sawmill is proceeding as planned. Moreover, production is now up and running at the new fluff pulp line at Skutskär Mill. The consumer board and packaging solutions businesses are growing and we have initiated a feasibility study to evaluate a potential conversion of Oulu paper mill into packaging board production. A potential conversion would enable us to take another step in our transformation journey. The other option is to continue the current fine paper production. I am very pleased with our new, more ambitious, financial targets regarding net debt to EBITDA and debt to equity ratio. These are signalling our aim to reach an investment grade credit rating. Our Accelerator programme is paying off. We have signed a joint development agreement with one of the programme participants, the Finnish start-up Sulapac. Together we contribute to combat the global problem of plastic waste by accelerating the use of fully renewable, recyclable and biodegradable materials in packaging. In May, we gathered 150 guests to celebrate the launch of our wood fibre-based biocomposite plant. It is Europe's largest and its products will contribute to gradually replace fossil-based materials. As always, I would like to thank our customers for their business, our employees for their dedication, and our investors for their trust."
Events today:
1) Webcast for media at 11.00 Finnish time (10.00 CEST)
The webcast for media will take place at 11.00 EEST (10.00 CEST, 09.00 UK time, 04.00 EDT). The event will be held in English and it will be hosted by CEO Karl-Henrik Sundström, CFO
Seppo Parvi, and EVP, Communications Ulrika Lilja. The webcast may be accessed at https://storaenso.videosync.fi/2018-07-20-q2.
2) Webcast and conference call for analysts and investors at 14.00 Finnish time
The webcast and conference call for analysts and investors will take place at 14.00 EEST (13.00 CEST, 12.00 UK time, 07.00 EDT). It will be hosted by CEO Karl-Henrik Sundström, CFO
Seppo Parvi, and SVP Head of Investor Relations Ulla Paajanen-Sainio, and may be accessed at https://edge.media-server.com/m6/p/rdj7ikgk.
Those analysts and investors who wish to ask questions should join the conference call (details below). All participants can follow the presentation over the webcast.
Dial-in details for the analyst and investor conference call
The links to the webcasts are also available on the Stora Enso website: storaenso.com/investors
For further information, please contact:
Seppo Parvi,
CF
tel. +358-2046-21205
Ulla Paajanen-Sainio
SVP
Investor Relations
tel. +358-40-763-8767
Ulrika Lilja,
EVP, Communications
tel. +46-72-221-9228
This release is a summary of Stora Enso's Half-year financial report January–June 2018. The complete report is attached to this release as a pdf file. It is also available on the company website at storaenso.com/investors.
Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 26 000 employees in over 30 countries. Our sales in 2017 were
EUR 10 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the
USA as ADRs (SEOAY). storaenso.com/investors
STORA ENSO OYJ
This information was brought to you by Cision http://news.cision.com
http://news.cision.com/stora-enso-oyj/r/stora-enso-s-half-year-financial-report-january-june-2018,c2578872
The following files are available for download:
