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Group profit is affected by changes in price and volume, though the effect on operating profit depends on the respective product group in question. The table Operating Profit: Impact of Changes shows the operating profit sensitivity to a +/- 10% change in either price or volume for different product areas.
| Operating
Profit: Impact of Changes +/- 10% |
| EUR
million |
Price |
Volume |
|
|
|
|
|
| Magazine
Paper |
300 |
110 |
|
| Newsprint |
160 |
70 |
|
| Fine
Paper |
300 |
120 |
|
| Packaging
Boards |
300 |
130 |
|
| Timber
Products |
120 |
30 |
|
The price and volume of different cost components
also have an impact on profit, the table Make-up Costs
and Sales showing the most important items relative
to total costs and sales.
| Make-up of Costs and Sales |
| Costs
Items |
% of Costs |
% of Sales |
|
| Variable |
|
| Transport and sales commission |
11 |
10 |
| Logs, pulpwood and recycled fibre |
20 |
18 |
| Chemicals and fillers |
11 |
10 |
| Energy |
7 |
7 |
| Other |
14 |
13 |
|
63 |
58 |
|
|
| Fixed |
|
| Personnel |
19 |
18 |
| Other |
8 |
7 |
|
27 |
25 |
|
|
| Depreciation
and amortisation |
10 |
10 |
| Total
costs |
100 |
93 |
|
The main items are personnel costs and the sourcing of logs, pulpwood and recycled fibre; for example, a 1% change in personnel costs is equal to EUR 20 million and 1% on fibre costs represents EUR 30 million. In order to mitigate the impact of these on earnings, the Group has started to hedge some of its open commodity and energy exposure.
Stora Enso had a positive balance in its pulp trading, the total production of 4.87 million tonnes resulting in net external sales of 90 000 tonnes. More information on resources and supplies is given in Environment and Resources.
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