HELSINKI, Jan. 29 (Xinhua) -- The Helsinki-based forest industry giant Stora Enso on Friday posted declined sales and profits for the fourth quarter (Q4) and the whole year of 2020.
The Q4 sales of the company shrunk by 10.7 percent to 2,154 million euros (2,606 million U.S. dollars), compared to 2,411 million euros in Q4 2019, according to a press release issued by Stora Enso.
Its operational EBIT (earnings before interest and taxes) in Q4 2020 was 118 million euros, down from 124 million euros one year ago.
The main reasons for the declines were given as structural changes, lower prices and volumes.
On an annual level, Stora Enso's sales in 2020 declined to 8,553 million euros, from 10,055 million euros in 2019. Operational EBIT in 2020 decreased to 650 million euros from 1,003 million euro in 2019.
Annica Bresky, President and Chief Executive Officer (CEO) of Stora Enso, noted in the press release that, if the paper business is excluded, operational EBIT during Q4 2020 would increase to 122 million euros from 80 million euros in 2019.
"The accelerated structural decline persists in the paper business, leading to overcapacity and severe price pressure. Despite this, paper delivered good cash flow," she said.
Bresky noted that for the business of biomaterials there are positive signs as the supply and demand situation is more balanced and the Chinese market continues to recover. (1 euro = 1. 21 U.S. dollars) Enditem
