•Despite the government mandated temporary production suspension from December 14 to December 29, 2015, revenue increased by 7.4% to $35.1 million, primarily attributable to an increase in sales of offset printing paper and contribution from sales of the newly launched tissue paper products, partially offset by a decrease in sales of regular CMP. •Gross profit increased by 7.1% to $6.0 million. •Gross margin slightly decreased to 17.0%, primarily due to the low gross margin for tissue paper products, partially offset by an increase in gross margin for light-weight CMP. •Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $7.1 million, an increase of 16.5% from the same period of last year. •Net income was $2.2 million, or $0.11 per diluted share, both of which remained unchanged from the same period of last year.
As previously informed, the Finnish Paper Workers’ Union, together with some other trade unions in Finland, started a three-week strike on 27 January, impacting Finnish forest industry and all Stora Enso’s operations in Finland, including Anjala, Oulu and Veitsiluoto mills.
We regret to inform that no resolution has been found yet in the negotiations between the trade unions and the Finnish Forest Industries. In fact, the unions have decided to extend the strike until 24 February 2020. The negotiations to resolve the issues will continue also during the strike, and the next meeting between the parties is scheduled for today, 3 February.
Stora Enso will do its utmost to serve its customers. However, the strike is a force majeure situation and may cause delays to customer deliveries from Finland. Impacts on customer deliveries are continuously under review and we will keep you informed through your normal contacts in our Sales and Customer Service Centres.
We deeply regret any disturbance created to our customers and we will do our best to minimize any negative impact.
We continue to monitor the situation closely and will keep you informed of further developments.