Why did Stora Enso move?
Written after the close on
Stora Enso fell clearly on plans to end CLT output in Sweden. Over the last five trading days Stora Enso Oyj fell sharply, more than a clearly weaker OMX Helsinki 25, after it said it plans to stop making cross-laminated timber (CLT, glued layers of wood used in construction) at Gruvön in Sweden and to focus on sawing, and started change negotiations (formal talks with unions about job cuts) at a Swedish sawmill, with rising wood costs having eaten into profitability. Those restructuring steps, announced last week, are the likely driver, and the weaker Helsinki market likely added to the pressure. Watch the late-October earnings report for how the sawmill-focused plan and wood costs affect the business.
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History in plain words, not investment advice.