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Stora Enso said its latest packaging board plant investments would help to boost earnings in the third quarter after the paper maker reported lower than expected second-quarter earnings.
Stora is one of the world’s largest makers of graphic papers - such as newsprint and magazine paper - which have faced falling demand as publishing moves online.
The company has shifted focus towards pulp and packaging board and is in the process of bringing a new paperboard plant in China into full production. It has also converted a paper making business in Finland to produce container board.
Stora said it had separated its paper division’s legal structure from other businesses, a move which one analyst said could signal a restructuring.
Stora’s adjusted operating profit in the second quarter which fell by 3 percent from a year ago to 219 million euros ($255 million), missing analysts’ average expectation for 228 million euros, in a Reuters poll of analysts.
“The Plant maintenance was more extensive than what we planned for,” chief operating officer, Karl Sundstrom said, adding that the Chinese board mill was now ramping up ahead of original plans.