In Finland, Stora Enso released their Q3 financials showing a continued focus on cash and costs and a profit protection programme target increase to EUR 275 million (about USD $307 million).
Q3/2019 (compared with Q3/2018) saw sales decreased by 7.1% to EUR 2 402 (2 585) million. Operational EBIT decreased to EUR 231 (358) million. Operating profit (IFRS) was EUR 170 (363) million. Strong cash flow from operations amounted to EUR 488 (457) million. Cash flow after investing activities was EUR 347 (319) million.
Q1–Q3/2019 (year-on-year) showed sales were EUR 7 644 (7 828) million, due to decreased prices and volumes. Operational EBIT was EUR 841 (1 054) million, due to decreased prices and volumes and increased variable costs.
According to Stora Enso, their outlook for 2019 states, “Deteriorating trading conditions caused by geopolitical uncertainties related to trade wars and a possible hard Brexit are expected to impact Stora Enso negatively. Demand growth is forecast to slow for Stora Enso’s businesses in general, and the decline in demand for European paper will continue. Due to the profit protection programme, costs are forecast to remain roughly at the same level in 2019 as in 2018. Stora Enso is still implementing additional profit protection measures to mitigate negative financial impacts of the current situation.”
Stora Enso’s CEO Karl-Henrik Sundström said, “As a company, we are preparing for the next market upturn through our profit protection programme which is proceeding ahead of plan. Since we were out early in launching it, we are building the prerequisites for a better and more profitable future when the cycle turns. It is important to take advantage of today’s situation to build a more future-proof company by being one step ahead and working proactively. To advance even further, we have increased the target to EUR 275 million from EUR 200 million and extended the programme until the end of 2021.
“It is soon time for me to hand over the torch to my successor, Annica Bresky, who will step in to her new position as President and CEO as of 1 December 2019.”
This articles was originally posted at: https://www.biofuelsdigest.com/bdigest/2019/11/03/stora-ensos-q3-financials-see-sales-decreased-by-7-1-ceo-hands-reins-to-annica-bresky/ on