Decline in demand for paper hits Stora Enso in Q2

The profit of Stora Enso, a Helsinki-based forest industry giant, declined to 178 million euros in the second quarter (Q2) from 299 million euros in the same period of 2019, reported Xinhua quoting the company's financial report published on Tuesday.

The turnover of Stora Enso, a manufacturer of pulp, paper and other forest products, was 2,114 million euros in Q2, down from 2,608 million euros year on year, the report showed.

The company suffered from the drop in the demand for paper. Annica Bresky, president and CEO of the company, told Finnish language business daily Kauppalehti on Tuesday that the measures to curb COVID-19 have accelerated the drop in the demand for paper.

Bresky said that paper comprises today only 20 percent of the turnover of Stora Enso. She noted that without the paper division the profit would be 216 million euros, while in Q1 it was 159 million euros.

Bresky said it is too early to say what the new level of demand for paper will be in the future.

Bresky said the result in cardboard and wood products was better than expected, adding that Stora Enso can give renewable solutions to support the European Union (EU) in the global transition to environment-friendly production.