Operational EBIT increased 12.7% to Euro 248 million, and the margin was record high at 10.1%.
Stora Enso's CEO Karl-Henrik Sundström said: “In the 1Q 2016, sales excluding the structurally declining paper business and divested Consumer Board Barcelona Mill increased 2.4%. This was primarily due to increasing volumes at Montes del Plata pulp mill and ramp-up of Varkaus kraftliner mill.
Cash flow year-on-year continued to be strong, due to increased profitability and improved working capital. Furthermore, we had a record high operational EBIT margin of 10.1%.
We continue to make progress in transforming into a renewable materials growth company. The Beihai consumer board mill in China is expected to be operational next month, i.e. in May 2016, ahead of schedule. The mill will be inaugurated in June. We expect full production in 18 to 24 months from the start up. The Varkaus Mill kraftliner ramp-up is proceeding and the market acceptance for brown kraftliner and its quality have been good from the beginning. Full production is expected in early 2017. The work on a new production line for wooden building elements (LVL) at Varkaus Mill is proceeding according to plan and production is scheduled to begin in June.”
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets.
