M-real Corporation's fourth quarter result weaker than expected mainly due to EUR 40 million non-recurring expenses
M-real Corporation Stock Exchange Bulletin 11.1.2006 at 3.15 p.m.
Out of the total of EUR 40 million, EUR 25 million is attributable to the cost
savings and efficiency improvement programme in the Pont Sainte Maxence mill in
France. Headcount will be further reduced by approximately 60 persons causing
redundancy and other non-recurring expenses amounting to EUR 4 million.
Furthermore, the book value of the mill's intangible and tangible assets
excluding land areas, amounting to EUR 21 million, will be written down in
The remaining non-recurring items are mainly attributable to the already
decided cost savings and efficiency improvement programmes carried out in
M-real's other units in 2006.
M-real's fourth quarter result excluding non-recurring items is somewhat weaker
than the third quarter result. The full year 2005 result before taxes including
non-recurring items will be clearly negative.
The cost savings and efficiency improvement programme announced in 2004 is
progressing in line with targets. According to the current estimate, the
non-recurring expenses caused by the programme will amount to a total of EUR 20
- 30 million in 2006.
For additional information, contact Juhani Pöhö, Executive Vice President and
CFO, tel. +358 10 469 5283 and Hannu Anttila, President and CEO, from 4.30 p.m.
onwards, tel. +358 10 469 4343