Stora Enso Oyj / Half-year Report January–June 2019

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Fit for the future, protecting profit and cash flow
Bergvik Skog transaction completed

Q2/2019 (compared with Q2/2018)

  • Sales decreased by 2.1% to EUR 2 608 (2 664) million.
  • Operational EBIT margin was 11.0% (12.3%), above 10% for the eighth consecutive quarter. Operational EBIT was EUR 287 (327) million.
  • Operating profit (IFRS) was EUR 142 (317) million.
  • EPS decreased to EUR 0.08 (0.28) and EPS excl. IAC was EUR 0.22 (0.31).
  • Strong cash flow from operations amounted to EUR 548 (357) million.
  • The net debt to operational EBITDA ratio at 2.2 (1.3) increased temporarily slightly over the target level of 2.0, due to the restructuring of Bergvik Skog (impact 0.6) and the adoption of IFRS 16 Leases (impact 0.3).
  • Operational ROCE was 11.3% (15.5%)

Q1–Q2/2019 (year-on-year)

  • Sales were EUR 5 242 (5 243) million, similar to the comparison period.
  • Operational EBIT of EUR 610 million decreased by 12.3%, mainly due to increased wood costs.

Outlook for 2019

Further 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 down for Stora Enso’s businesses in general and demand decline is escalating for European paper. Costs are forecast to increase in 2019 compared to 2018. Stora Enso will implement additional Profit Protection measures to mitigate these cost increases and the geopolitical uncertainties. Due to the current uncertainties in the business environment Stora Enso will not comment on estimated sales development in the outlook.

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Source: Stora Enso

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