Finnish forestry firm Stora Enso has raised its full-year earnings guidance thanks to sustained strong market conditions.
The company now expects its operating profit for 2022 to exceed last year's level of €1.5 billion, it said in a statement.
The maker of pulp, packaging, wood construction materials and other forestry products previously guided for a profit approximately in line with the full year 2021.
'Continued Strong Performance'
"During 2022, all the main markets of Stora Enso have experienced continued strong performance, with increased visibility and predictability for the full year," the company said.
"The strong underlying demand and commercial momentum has continued across all six divisions and geographies."
All divisions remain fully booked and there is still a tight supply and demand balance in many product categories. The second quarter started with high selling prices, which have continued to mitigate inflationary pressures, Stora Enso added.
At the end of April, Stora Enso said it had entered into an agreement to sell its two sawmills and the accompanying forest operations in Russia to local management, causing it to record a €130 million loss.
The company is also planning to investing €400 million to convert one of its two existing paper lines to a container board line in Belgium.