Two of Europe's biggest paper manufacturers have issued profit warnings ahead of the release of third quarter financial results, due later this month.
Stora Enso announced that continuing high costs for wood and recycled fibre, coupled with the weakening US dollar, have impacted on its results.
The company reported that on a comparable basis, the operating result was slightly below the level achieved in the third quarter of 2006.
It expects that high wood and recycled fibre cost pressure will continue during the Q4 2007 and in turn also affect financial results for that period.
A spokesperson for Stora Enso told printweek.com: "One of the main impacts of these rising costs is that it's hurting the profitability of the industry.
"It's a cost increase that comes through very quickly and it's likely to affect the fourth quarter results as well."
UPM has also cited the rise in wood costs as behind the slump, and the strengthened euro means the company's operating profit will be lower than its results for the same time last year.
However, the manufacturer reported that for the full year 2007, operating profit excluding special items is forecast to exceed that of 2006.
Stora Enso's third quarter 2007 results will be published on 25 October while UPM is set to release its results on 30 October 2007.
Source: printweek
Stora Enso announced that continuing high costs for wood and recycled fibre, coupled with the weakening US dollar, have impacted on its results.
The company reported that on a comparable basis, the operating result was slightly below the level achieved in the third quarter of 2006.
It expects that high wood and recycled fibre cost pressure will continue during the Q4 2007 and in turn also affect financial results for that period.
A spokesperson for Stora Enso told printweek.com: "One of the main impacts of these rising costs is that it's hurting the profitability of the industry.
"It's a cost increase that comes through very quickly and it's likely to affect the fourth quarter results as well."
UPM has also cited the rise in wood costs as behind the slump, and the strengthened euro means the company's operating profit will be lower than its results for the same time last year.
However, the manufacturer reported that for the full year 2007, operating profit excluding special items is forecast to exceed that of 2006.
Stora Enso's third quarter 2007 results will be published on 25 October while UPM is set to release its results on 30 October 2007.
Source: printweek
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