HELSINKI, Finland, Oct. 27, 2010 (GLOBE NEWSWIRE) -- "Another strong earnings performance - time to build our future"
STORA ENSO OYJ STOCK EXCHANGE RELEASE 27 October 2010 at 09.01 EET
"The third quarter was yet another proof point of Stora Enso in action,determined to build a business that creates value for our shareholders. A very significant part of our earnings improvement again came through early cost reductions and active management of both pricing and customer mix. Only this year we are permanently removing about 700 000 tonnes of paper capacity or four machines in Europe, a demonstration of our commitment to do what it takes to improve our cost position and productivity. The recent quarters should also prove that our actions are starting to pay off.
"We are also continuing to build the future of Stora Enso in line with our strategy of fibre-based packaging and plantation-based pulp in growth markets, as well as a focussed competitive paper portfolio. We have been tested in unforeseen ways during the past few years, and now we are coming out stronger through our own actions. That is a good starting point for the next part of our journey.
"As a concrete sign of the next part of our journey, we have today announced the acquisition of the majority shareholding in Chinese packaging company Inpac International, which is strategically a perfect fit for our portfolio. The acquisition offers us an excellent opportunity to increase our presence in China and India, the two fastest-growing consumer packaging markets in the world.
"Looking into the fourth quarter, the market outlook remains generally favourable, but pressure on variable costs, seasonal demand weakness in some products and maintenance stoppages are expected to decrease our fourth quarter earnings quarter-on-quarter. As before, these challenges will only make us strive harder to improve the things we can influence ourselves."
For further information, please contact: Jouko Karvinen, CEO, tel. +358 2046 21410 Lauri Peltola, Head of Communications and Global Responsibility, tel. +358 2046 21380 Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242 www.storaenso.com www.storaenso.com/investors
Stora Enso is a global paper, packaging and wood products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products. The Group is the world leader in forest industry sustainability. We offer our customers solutions based on renewable raw materials. Our products provide a climate-friendly alternative to many non-renewable materials, and have a smaller carbon footprint. Stora Enso is listed in the Dow Jones Sustainability Index and the FTSE4Good Index. Stora Enso employs some 27 000 people worldwide, and our sales in 2009 amounted to EUR 8.9 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.
STORA ENSO OYJ