Consumables

Stora Enso CEO Jouko Karvinen comments on fourth quarter and full year 2013 results announced today

Thursday 06. February 2014 - "Strong cash flow, solid progress in cost reduction"

“We ended the fourth quarter and the year essentially as expected, with a positive tone from cost reduction and working capital improvement. Both contributed to very strong cash flow from operations, but they are also essential metrics for successfully advancing on our transformation journey.
“Within the Printing and Living Division, Printing and Reading segment  was able to deliver solid cash flow for the year despite reduced profitability and long term structural decline on the market. It is yet another proof point that we must and can go on adjusting this business to the realities of the markets we serve. Building and Living segment, which was the first of our businesses to start its cost reduction programme, made progress on its turnaround with clearly value-creating returns.
“Renewable Packaging had a strong last quarter with significant year-on-year improvement in earnings and cash flow. Finally, in Biomaterials the focus was and remains on starting up Montes del Plata Pulp Mill in the early months of 2014, as we said in October. The reports on the degree of completion and quality of the commissioning efforts remain positive.
“Like many other years before, the year 2013 included difficult decisions affecting many of our employees. That is a price we must pay to transform our company.
“We have started 2014 in a positive mood. With the recent investment in Ostro??ka Mill in full swing, Montes del Plata to follow soon and our China project progressing with encouraging early experience from forestry and the mill site works, this will be a thrilling year. This is a string of pearls we will continue to build on whilst adjusting the business and Group cost structures to the realities of the surrounding world. An exciting journey, and we are making real progress.”