HELSINKI (From news reports) -- Finnish-Swedish forestry group Stora Enso said Wednesday it will record impairments totaling some 724 million euros ($760 million) in its fourth quarter, citing weaker demand and increased costs.
The company said the impairments were mainly a result of it predicting a weaker cash flow in the long-term from its packaging divisions in China and western Europe and its wood products division in northern Europe.
"The main reasons behind the weaker estimates are lower sales prices, increasing costs and a weaker market supply-demand situation compared to a year ago", Stora Enso said in a statement.
Taking into account a positive tax effect of approximately 56 million euros, the estimated negative net impact will be around 668 million euros, the company said.
Stora Enso will report its full-year results on February 11.
In October, Stora Enso reported a 6.9 percent drop in sales to 6.7 billion euros in the first nine months of 2024, and a net profit of 195 million euros for the same period.
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