In the fourth quarter, Stora Enso’s Wood Products division saw its sales grow by 42% or €150 million to €510 million. According to the company, this further growth was mainly the result of record-high prices in combination with steady demand, even though classic lumber deliveries decreased slightly.
Earnings before interest and taxes (EBIT) were up by €56 million and reached a record value of €89 million in the fourth quarter. Record prices more than offset substantially higher raw material prices and increasing production-related costs.
At 53.1% (23.5%), return on operating capital (ROOC) was well above the long-term target. This is the result of profitability being at a record high, even though the capital base increased considerably mainly due to ongoing investments in building solutions.
The mass timber construction market continues to grow. A slight decrease in the number of construction projects is compensated for by the substantial increase in average project size.
Stora Enso will continue to strengthen this division. In the third quarter of 2022, for example, a new CLT production line will go into operation in Zdirec/CZ (€79 million investment).
At its sawmill in Varkaus, Stora Enso is building a pellet plant which will process sawmill by-products such as wood chips, dry wood shavings and sawdust.
