Stora Enso has curtailed production of paper and board by 9% in Q3 2011, according to its latest interim review. In the Fine Paper business area, these curtailments are very likely to be carried on in the fourth quarter to secure cash flow and manage inventories, the company elaborated. Moreover, the annual maintenance stoppage at Veitsiluoto mill will take place during the fourth quarter.
In the third quarter 2011, the company’s fine paper sales declined by 6 % compared to the same period last year. The business areas operating profit for Q3 declined by 46.7% compared to the same period in 2010.
Altogether in Q3 2011, Stora Enso had to report a net loss of €49.9m compared to a net profit of €136m in Q2 2011 and to a net profit of €194.3m in Q3 2010. The company’s results are mainly impacted by underperformance of associated companies, essentially due to currency impacts, CEO Jouko Karvinen said in a statement.
Moreover,Stora Enso had to report a negative non-recurring item of €128m due to the insolvency of the New Page Corporation. When Stora Enso North America was divested to New Page in 2007, the Stevens Point Mill PM 35 lease obligation was transferred from Stora Enso to New Page. However, as explained in the group's financial statements since 2007, Stora Enso remained as guarantor of the lease. Stora Enso now intends to recover a portion of the recorded cost related to the lease obligation in New Page's restructuring.