The Finnish-Swedish manufacturer reported first-quarter operating profits of 145.5m in May, down 22% on the same period last year (PrintWeek, 2 May). It will issue its second-quarter results on 24 July.

Stora Enso is attributing the fall in operating profits to the combined effects of weak economic conditions in Europe, resulting in an increase in lower-profit-margin overseas exports from its European mills.

It is also being hit by the fall in value of the dollar and overcapacity in some paper grades, and the weak financial performance of its North American operations due to high energy costs, low production volumes, and only small success in increasing product prices.