HELSINKI (AP) -- Stora Enso Oyj plans to cut up to 240 jobs as part of streamlining measures aimed at saving costs amid falling sales and plummeting profit in a depressed paper market.
The Nordic paper maker said Wednesday that fourth-quarter net profit plunged 66 percent to euro100 million ($130 million), from euro313 million a year earlier, as it was hit by higher costs and low demand. Net sales were down slightly at euro2.681 billion, from euro2.685 billion.
The layoffs — 130 in maintenance operations at plants in Sweden, and 110 in magazine paper production in Finland — were part of the company's drive to cut annual costs by some euro70 million.
Stora stock was up 1.5 percent at euro5.74 ($7.53) in afternoon trading in Helsinki.
CEO Jouko Karvinen said the Finnish-Swedish company's fourth-quarter result had been hit by "uncertainty and slowing down of the economy" and cautioned that early 2012 would also be "a challenging operating environment."
Like other forest products companies, Stora has been struggling with persistent overcapacity in European markets and low demand, forcing it to cut production, close mills and lay off thousands of workers.
Karvinen said more changes were needed.
"Reviewing our own performance in 2011, it is also evident that more flexibility, productivity and work to build customer loyalty are needed," he said. "We need to re-engineer our demand chain to release cash from working capital to invest in our future."
Karvinen said that "uncertainty and limited visibility, at least in European markets, will continue."
Helsinki-based Stora Enso is one of the world's largest forest product companies making magazine paper, newsprint, fine paper, pulp and packaging boards. It employs some 30,000 worldwide.
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Online:
http://www.storaenso.com
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