By Agnieszka Olenska and Elviira Luoma
(Reuters) -Finnish forestry group Stora Enso’s first-quarter operating profit beat market expectations on Friday, even as it warned that market demand would remain subdued amid concerns triggered by U.S. President Donald Trump’s tariffs.
CEO Hans Sohlström said the direct impact at current tariff rates was limited, as Stora’s direct sales to the U.S. accounted for just below 3% of group sales in 2024.
Local peer UPM on Thursday also warned of an indirect tariff hit while saying the direct impact should be limited, despite its much bigger exposure to the United States.
Sohlström underscored that in addition to the risks, there were also opportunities arising from tariffs to develop Stora’s sales into new markets, without specifying which regions he was referring to.
“The key here is … to reposition, but also to renegotiate prices in the U.S. to compensate for tariffs in the U.S., but at the same time also to grasp new opportunities in new markets,” he told Reuters in an interview.
The company’s adjusted operating profit, or earnings before interest and taxes, rose to 175 million euros ($198.42 million)in the first quarter, trouncing analysts’ 124.9 million euro forecast in a poll by Vara Research.
Its shares were up 1% at 0905 GMT, while UPM fell 1%.
“The clearest outperformance against our forecasts came from Packaging Materials, Packaging Solutions and Wood Products in terms of turnover,” Inderes analyst Antti Viljakainen said in a research note.
Stora also said it expected the ramp-up of its new packaging board line in Oulu, Finland to have a negative impact of about 100 million euros on its annual adjusted operating profit, and forecast capital expenditures of 730-790 million euros for 2025.
($1 = 0.8820 euros)
(Reporting by Agnieszka Olenska and Elviira Luoma, editing by Milla Nissi)
