Finland's forest industry remains under pressure as leading producers posted weaker third-quarter earnings, underscoring sluggish demand, low prices, and continued market uncertainty, reported Xinhua.
Stora Enso said Thursday its July-September operating profit dropped 28 percent year-on-year to 126 million euros, down from 175 million euros in 2024.
Net sales edged up slightly to 2.28 billion euros from 2.26 billion a year earlier. For the first nine months of 2025, sales rose to 7.1 billion euros from 6.7 billion, while operating profit fell to 427 million euros from 478 million.
The company described market conditions as "subdued and challenging," citing weak consumer confidence and geopolitical tensions.
It warned that tariffs pose both risks and opportunities but remain a drag on global trade and sentiment.
Demand is expected to stay weak across most segments, with low pulp prices, sluggish construction activity, and high log costs in Central Europe constraining performance.
Only Stora Enso's forest segment continues to show resilience despite elevated fiber costs.
Metsa Group also reported a difficult quarter, swinging to a 72-million-euro loss from a 113-million-euro profit a year earlier.
Quarterly sales rose modestly to 1.44 billion euros from 1.34 billion. The company said market uncertainty has clouded short-term visibility, especially in paperboard and pulp, and suspended near-term forecasts.
U.S. tariffs hit its paperboard unit hard, with orders only slightly recovering after a sharp drop last spring.
Once a pillar of Finland's economy, the forestry sector faces prolonged weakness amid global demand stagnation, rising costs, and structural shifts. While near-term prospects remain dim, Pellervo Economic Research Institute expects gradual stabilization, forecasting around 3 percent annual export growth in 2025-2026 led by timber.
However, paper and plywood exports are seen flat, with high domestic wood prices continuing to squeeze margins.
- Finland
- Forest industry
- Struggles
Source: www.dailyfinland.fi
