Stora Enso posts Q4 loss

The world’s second- largest papermaker,  Stora Enso, posted a bigger-than-expected loss in the fourth quarter on rising wood prices and costs to close mills, according to a Bloomberg report. The loss was 135.3 million euros ($197 million), compared with a year-earlier profit of 263 million euros. Analysts estimated a loss of 81 million euros. Sales from continuing operations gained 1.6% to 3.37 billion euros, less than the analyst estimate of 3.55 billion euros, the report stated.The company is closing pulp mills in Finland and Sweden after price of Finnish wood rose as much as 30% last year. Papermakers have struggled to pass on fiber expenses to customers even as global capacity is reduced. One-time costs including the closures amounted to 388.5 million euros in the quarter.

Stora, based in Helsinki, said it may close more mills as it tries to eliminate its dependence on Russian wood imports before tariff increases that will double prices. Any measures will be announced in the next few months, Chief Executive Officer Jouko Karvinen said.