Forestry company Stora Enso's adjusted operating profit fell 28% in July-September. The result was 126 million euros, down from 175 million euros during the same period last year.
The company attributed the profit decline to the startup of its new packaging board line in Oulu, Finland. The negative impact from the new line totaled 45 million euros for the quarter.
Stora Enso's revenue grew by 1% to 2.28 billion euros. The modest revenue increase was influenced by both the Oulu line startup and the acquisition of sawmill company Junnikkala.
In September, Stora Enso completed the sale of 175,000 hectares of forest land in Sweden. This represents about 12% of the company's forest assets. The enterprise value of the transaction was approximately 900 million euros.
Production volumes at the new Oulu packaging board line are gradually increasing, but volumes are somewhat behind the original schedule. The line is expected to reach full capacity during 2027.
The company expects market demand to remain weak and challenging. Consumer confidence remains low, while macroeconomic and geopolitical uncertainty has increased.
Planned maintenance shutdowns will affect profitability in the final quarter of the year, according to company statements.
The profit drop shows how major industrial investments can temporarily hurt earnings, even for established companies like Stora Enso. The forest products giant faces the dual challenge of integrating new production capacity while navigating weak market conditions.