Stora Enso falls on 'very weak' Q2, no signs of recovery

Metsa Board Oyj

21/07/2023 08:10

** Shares in Stora Enso  STERV.HE  fall 5% after the Finnish
forestry firm reported Q2 operating profit well below
expectations and sees no imminent signs of improved market
demand
    ** Q2 EBIT falls 93% to EUR 37 million ($41.2 million),
missing EUR 141 million seen in Refinitiv poll
    ** Jefferies notes the "very weak Q2" and says the quantum
of potential cuts to 2023 EBIT guidance is greater than expected
    ** Credit Suisse echoes the sentiment, commenting on "weak
numbers" and says it expects the tight wood market to continue
    ** Inderes says the overall picture is bleak and in short
term there may be further downward pressure to consensus
estimates
    ** "Stora Enso needs to be able to put a floor under 2023-24
expectations and lay out its roadmap to recovery," Jefferies
concludes
    ** Finnish peer Metsa Board  METSB.HE  down 2.7% in morning
trade
    ** The stock is one of bottom performers on Stoxx 600 index
 .STOXX , if losses hold, it will see its worst day since March
   

 (Reporting by Jagoda Darlak)
 ((jagoda.darlak@tr.com))