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Stora Enso profits drop on weak demand, overhaul

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July 19, 2013 07:32 AM EST | AP

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HELSINKI — Stora Enso, Europe's largest paper maker by sales, has reported a 70 percent plunge in second-quarter earnings to 21 million euros ($27 million) due to sluggish European demand and ongoing restructuring costs.

The Helsinki-based company says sales for the period reached 2.7 billion euros, unchanged from a previous earlier.

CEO Jouko Karvinen says the results were disappointing but highlighted the company's "solid" performance in its renewable packaging operations.

Stora Enso has shifted focus from Europe to emerging markets such as China in past years. The company announced Friday that it has been granted all requisite approvals to build an integrated pulp and board mill in Guangxi, China, that is expected to go online in 2016.