Kemira drops as negative news from forestry industry overshadows Q1 beat

Kemira Oyj

25/04/2023 11:08

** Shares in Kemira  KEMIRA.HE  fall 7% despite
better-than-expected Q1 results as investors turn cautious amid
downbeat news flow from forestry sector
    ** Inderes analyst Petri Gostowski says that the market is
already looking to the future rather than the recent past
    ** He says that while Q1 results were better than expected,
the recent "clearly weak" news flow from forestry firms needs to
be taken into an account
    ** "Kemira's prices, like its sales volumes, will sooner or
later turn downwards following the trend in demand of forestry
companies," Gostowski says
    ** "Investors therefore do not believe that the current
level of earnings is sustainable," Gostowski adds
    ** Kemira reports record-high operative EBITDA of EUR 192.6
million ($212.8 million) with improvement in both segments
driven by higher sales prices
    ** Inderes says the Pulp & Paper division's revenue growth
was below its estimates, even as the unit's EBITDA margin rose
to 21.7%, well above Inderes' expectations
    ** The stock is the worst performer on the Helsinki
all-share index  .OMXHPI 
   
($1 = 0.9052 euros)

 (Reporting by Elviira Luoma)
 ((Elviira.luoma@thomsonreuters.com))