Stora Enso falls 5% after guidance cut

Holmen AB

20/04/2023 08:07

** Shares in Stora Enso  STERV.HE  fall around 5% to July
2020 lows after the Finnish forestry firm lowered its guidance
for 2023, citing adverse impact from soaring costs which also
hit customer confidence
    ** Stora Enso now expects a significantly lower operational
profit in 2023 than in 2022. It had guided in February for lower
operational profit
    ** Credit Suisse consider the profit warning as a negative
read across to the sector, in particular to UPM-Kymmene  UPM.HE 
(-3.6%), Holmen  HOLMb.ST  (-1.8%), SCA  SCAb.ST  (-1.8%), Mondi
 MNDI.L  (-1.8%), and Billerud  BILL.ST  (-2.5%)
    ** "Rising wood costs is a significant cost issue," the
broker says
    ** Stora Enso's shares are down 17% year to date

 (Reporting by Boleslaw Lasocki)
 ((boleslaw.lasocki@tr.com))