Stora Enso’s Wood Products division saw record results in the first quarter of 2021. Among other things, the division recorded its highest quarterly EBIT-% ever.
Sales in the company’s Wood Products division increased by 13%, or EUR 43 million to EUR 382 million. Growth was driven by a strong global demand especially for classic sawn products.
Operational EBIT increased by EUR 34 million to EUR 52 million. This was the second highest Q1, and highest quarterly EBIT-% ever. Higher prices and volumes impact partly offset by higher raw material costs.
Operational ROOC increased above the long-term target to 36.9% (11.3%).
Overall, in January-March, Stora Enso has succeeded in increasing its net sales and earnings from last year.
In January-March, Stora Enso’s net sales (all divisions) increased by 3.1 percent from the previous year to EUR 2.28 billion. According to the company, this was due to higher deliveries and higher prices.
The operating profit, on the other hand, increased by 82 per cent to EUR 328 million, driven by the savings program. The operating margin was 14.4%.
According to Stora Enso’s earnings release, this year’s demand outlook is good for all businesses except paper. The company expects the full-year operating result to be higher than in 2020.
“World trade has recovered faster than expected this year, with an important factor in the economic recovery in China and the United States. The governments’ rapid stimulus measures have also helped to stimulate the global economy and avoid deep recessions, ” commented Annica Bresky, CEO of Stora Enso.
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