Paper giants to push prices as 3Q figures struggle

M-real has said measures to raise product prices will continue in all business areas, and the implementation of price increases for coated magazine paper and folding boxboard is progressing.

Compared with the previous year, its operating result excluding non-recurring items was weakened by the increased wood, raw material and energy costs.

The paper giant has recorded sales for July to September totalled €826m ($AU1.63bn), down 0.4% from €870m ($AU1.72bn) the same time a year earlier.

The operational result for the period was a loss of €8m ($AU15.8m), down from a profit of €44m ($AU86.8m) the same time a year earlier.

M-real’s total sales for January to September were €2.51bn ($AU4.95bn), down 3.9% from the same time a year earlier.

Elsewhere, Stora Enso said it has recorded poor but “better than expected” third quarter results, following a drastic restructuring programme launched last year.

The company has made cost and capacity cuts, focused on pricing quality, increased Finnish wood sourcing and strengthened its balance sheets through divestment.

Chief executive Jouko Karvinen has said such actions have been “critically important”.

The company recorded sales for January to September 2008 of €2.72bn ($AU5.36bn) compared with €2.87bn ($AU5.66bn) the same time a year earlier.

It reported an operating loss of €138m ($AU272m) compared with a loss of €305m ($AU602m) from last year, and a pretax loss of €161m ($AU318m) compared with a loss of €329m ($AU649m) in 2007.

Chief executive Jouko Karvinen said it has already achieved “meaningful and necessary” price increases in local currencies compared to the prior year.

Read the original article at www.printweek.com.

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