Helsinki, Finland – Stora Enso reported Tuesday losses for the second consecutive quarter, burdened by weakened demand for its wood and paper products as the construction and retail sectors suffer a slowdown.
The Finland-based company said it lost 34 million euros ($36m) in the third quarter, down from the 367-million-euro net profit during the July to September period last year.
This follows 257 million euros ($272m) in losses in the second quarter of 2023.
“Our financial performance and result have quickly decreased to a historically low level,” CEO Hans Sohlstrom said in a statement.
After experiencing sales growth in 2021 and 2022, Stora Enso saw sales tumble by 28 percent in the third quarter compared to the same period last year, to 2.1 billion ($2.22bn) euros.
“The global pulp demand is still weak, and the supply is high,” Sohlstrom explained.
The poor outlook in the construction sector, weighed down by the high interest rates, has hit demand for Stora Enso’s wood products.
In June, Stora Enso announced the closure of four of its European sites and layoffs of 1,150 employees.
The company said at the time that the halt of wood imports from Russia had resulted in increased competition for pulpwood supplies and reduced the cost-effectiveness of its sites.
In March 2022, Stora Enso stopped all its production and sales in Russia in response to Moscow’s invasion.
The company expects its market outlook to continue to be subdued going into 2024 “as weak global growth and high inflation weigh on its performance.”
