Stora Ensos outlook remains bleak, according to chief executive Jukka Hrml after the group reported interim results for January to June 2001 in line with its forecasts.


The group took a massive amount of downtime during the period, totalling 558,000 tonnes, of which 342,000 tonnes was market-related.
Sales fell 7% from the previous quarter to 2.08bn (e3.38bn), while profit before tax and excluding non-minority items dropped 42% to 152.5m. Foreign exchange losses also decreased second-quarter profits by 27m.


Hrml said he felt the industry had taken a disciplined approach to market conditions in the US
and Europe, which had helped to make it easier to maintain inventory and pricing levels.
Paper and board deliveries totalled 3.1m tonnes, down 161,000 tonnes on the previous quarter.


There are some smaller signs of improvement in the US, but in Europe forecasts have been revised downwards for the rest of the year, Hrml said.
He added that Stora Enso was still fully committed to its programme of adjusting capacity to meet demand.


The groups senior executive vice president, Ingvar Petersson, is to retire with effect from 1 September 2001.
Esko Mkelinen has been appointed senior executive vice president and chief financial officer.


Nils Grafstrom, senior vice president for South America, has been appointed as executive vice president for market service and IT, while retaining responsibility for South America.


Story by Andy Scott