The Finnish-Swedish Stora Enso, Europe's biggest paper and cardboard maker , made a net loss of nearly 655 million euros in the fourth quarter. Sales slumped by nearly 13 percent. For all of last year, Stora reported a net loss of some 680 million euros.
To save on costs, the company plans to halve dividend payments. Company executives also say they will relinquish one month's salary. In late January, Stora Enso launched temporary layoff talks with over 5,000 employees.
Meanwhile rival paper company UPM reports a fourth quarter net loss of 286 million euros. The world's biggest magazine paper producer made a net profit of almost 30 million in the same period of 2007. Sales in the end of last year shrank by eight percent.
UPM also began layoff talks last month. The company is to furlough some 600 workers in Lappeenranta this spring for about three weeks. In December UPM announced labour talks across various sectors of its operations.