Stora Enso Interim Review January - Sept

STORA ENSO OYJ Stock Exchange Release 23 October 2003 at 13.00


Stora Enso Interim Review January - September 2003
Profitability improved in difficult markets

Third Quarter Results

Stora Enso's earnings per share excluding non-recurring items were
EUR 0.09 (EUR 0.07). Operating profit excluding non-recurring items was
EUR 139.8 (EUR 106.7) million, which is 31.0% more than in the previous
quarter and 4.7% of sales. Profit before taxes and minority interests
excluding non-recurring items amounted to EUR 107.4 (EUR 86.9) million.
Non-recurring items for the period totalling EUR -39.9 million
comprised USD 27.4 (EUR 24.6) million of restructuring charges related
to the cost reduction programme in North America and a further EUR 15.3
million at Corbehem Mill in France.

Sales of EUR 2 987.4 million were 2.3% lower than the previous
quarter's EUR 3 057.0 million. Cash flow from ongoing operations was
EUR 373.8 (EUR 383.3) million and cash flow after investing activities
EUR 87.4 (EUR 40.2) million. Cash earnings per share excluding non-
recurring items were EUR 0.44 (EUR 0.41). Net financial items were EUR
-23.4 (EUR -11.3) million. Market-related production curtailments
totalled 170 000 (200 000) tonnes.


EUR                                     
million      2001      2002  Q1-Q3/02 Q1-Q3/03     Q3/02    Q2/03    Q3/03
Sales    13 508.8  12 782.6   9 570.5  9 143.5   3 108.6  3 057.0  2 987.4
EBITDA
1)2)      2 762.8   2 172.0   1 698.3  1 343.5     577.5    399.7    443.2
Operating profit
2)        1 495.2     926.5     719.6    457.6     255.4    106.7    139.8
Net non
recurring 
items        -8.3  -1 078.1  -1 177.9    -39.9  -1 229.5        -    -39.9
Operating
margin2), %  11.1       7.2       7.5      5.0       8.2      3.5      4.7
Operating 
profit    1 486.9    -151.6    -458.3    417.7    -974.1    106.7     99.9
Profit before
tax and
minority
interests2)       
          1 231.3     734.9     591.9    323.6     196.8     86.9    107.4
Profit before
tax and
minority
interests
          1 223.0    -343.2    -586.0    283.7  -1 032.7     86.9     67.5
Net
profit for the
period      926.3    -222.2    -699.7    188.8    -998.7     56.3     47.2
   
EPS2), Basic,
EUR          0.94      0.57      0.45     0.25      0.15     0.07     0.09
EPS, Basic,
EUR          1.03     -0.25     -0.78     0.22     -1.12     0.07     0.06
CEPS2),
EUR          2.34      1.97      1.68     1.29      0.51     0.41     0.44
ROCE2), %    10.8       7.1       7.2      5.1       7.9      3.6      4.6


1) EBITDA = Earnings before Interest, Taxes, Depreciation and Amortisation
2) Excluding net non-recurring items


Outlook

Commenting on the outlook, Stora Enso's CEO Jukka Härmälä said, "The
long-awaited recovery in demand for forest products in Europe is still
not clearly apparent. The macroeconomic environment has not provided
the conditions for sustained improvement in advertising spending, so
demand for advertising-driven paper grades remains moderate. Demand for
the Group's packaging board products, which depends on general economic
activity, remains stable. The outlook for product prices in Europe is
largely stable, except in fine paper, where downward price pressure
persists."

In North America the recovery in economic activity is evident, although
the pace of improvement is slow and somewhat irregular in forest
products. North America is expected to lead the way towards better
conditions in global paper markets. This can be seen in the price
increases being implemented in certain grades.

Fine paper markets in Asia have recovered from the effects of SARS but
are still competitive. However, GDP in the region is growing swiftly
especially in China.

These challenging market conditions have prompted the Group to
strengthen its focus on implementing a number of cost-reduction
initiatives. In addition to the North America programmes, these
initiatives include mill-by-mill productivity improvement programmes,
fixed and variable cost reduction measures and steps to decrease Group
staff function and IT costs. As announced in the previous Interim
Review, steps have also been taken to ensure capital expenditure in the
2003-04 period remains in line with the Group's depreciation charges.

For further information, please contact:
Jukka Härmälä, Chief Executive Officer, tel. +44 20 7016 3110
Björn Hägglund, Deputy Chief Executive Officer, tel. +46 70 528 2785
Esko Mäkeläinen, CFO, tel. +44 20 7016 3115
Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197
Keith B Russell, SVP, Investor Relations, tel. +44 20 7016 3146 or +44
7775 788 659

The full-length version of the Stora Enso interim review is available
on the Stora Enso website at
www.storaenso.com/investors

An image bank of pictures that may be freely used to illustrate
articles about Stora Enso is available at www.storaenso.com/images

Stora Enso's results for 2003 will be published on 4 February 2004.


Stora Enso Interim Review January - September 2003

Summary of Third Quarter Results

* Earnings per share excluding non-recurring items were EUR 0.09;
  previous quarter EUR 0.07.
* Operating profit excluding non-recurring items was EUR 139.8
  million; previous quarter EUR 106.7 million.
* Profit before tax and minority items excluding non-recurring items
  was EUR 107.4 million; previous quarter EUR 86.9 million.
* Sales were EUR 2 987.4 million; previous quarter EUR 3 057.0
  million.
* Cash earnings per share excluding non-recurring items were EUR
  0.44; previous quarter EUR 0.41.
* Non-recurring items totalling EUR -39.9 million decreased earnings
  per share by EUR 0.03.

Economic activity continued to be subdued in the third quarter of 2003,
hindering growth in demand for the Group's products, especially in
advertising-driven paper grades. Prices for certain products were
depressed by oversupply and US dollar weakness.

In Western Europe lower-margin overseas exports and sales to Eastern
Europe increased deliveries, whereas demand in most domestic markets
remained low. Downward pressure on fine paper prices persisted.

In North America there were positive signs of recovery, but imports
from Asia and Europe disturbed the supply and demand balance. Price
increases are being implemented in certain grades.

Production was curtailed by a total of 170 000 tonnes to adjust to
market demand. In North America the curtailments were 25 000 tonnes and
in Europe 145 000 tonnes. This compares with the previous quarter's
total of 200 000 tonnes, comprising 42 000 tonnes in North America and
158 000 tonnes in Europe.

Paper and board deliveries totalled 3 412 000 tonnes, which is 58 000
tonnes more than the previous quarter's 3 354 000 tonnes. Production
volumes at 3 501 000 tonnes were 5.6% more than in the previous
quarter. Deliveries of wood products totalled 1 337 000 cubic metres,
compared with the previous quarter's 1 644 000 cubic metres.


EUR                                     
million      2001      2002  Q1-Q3/02 Q1-Q3/03     Q3/02    Q2/03    Q3/03
Sales    13 508.8  12 782.6   9 570.5  9 143.5   3 108.6  3 057.0  2 987.4
EBITDA
1)2)      2 762.8   2 172.0   1 698.3  1 343.5     577.5    399.7    443.2
Operating 
profit2)  1 495.2     926.5     719.6    457.6     255.4    106.7    139.8
Net non
recurring 
items        -8.3  -1 078.1  -1 177.9    -39.9  -1 229.5        -    -39.9
Operating 
margin2), %  11.1       7.2       7.5      5.0       8.2      3.5      4.7
Operating 
profit    1 486.9    -151.6    -458.3    417.7    -974.1    106.7     99.9
Profit before
tax and 
minority 
interests2)  
          1 231.3     734.9     591.9    323.6     196.8     86.9    107.4
Profit before
tax and
minority 
interests
          1 223.0    -343.2    -586.0    283.7  -1 032.7     86.9     67.5
Net profit
for the
period      926.3    -222.2    -699.7    188.8    -998.7     56.3     47.2
   
EPS2),
Basic, EUR   0.94      0.57      0.45     0.25      0.15     0.07     0.09
EPS,
Basic, EUR   1.03     -0.25     -0.78     0.22     -1.12     0.07     0.06
CEPS2), EUR  2.34      1.97      1.68     1.29      0.51     0.41     0.44
ROCE2), %    10.8       7.1       7.2      5.1       7.9      3.6      4.6

1) EBITDA = Earnings before Interest, Taxes, Depreciation and
   Amortisation
2) Excluding net non-recurring items


Third Quarter Results (compared with previous quarter)
Earnings per share excluding non-recurring items were EUR 0.09
(EUR 0.07). The main impacts on EPS were EUR 0.03 due to higher sales
volumes and EUR 0.03 due to reduced fixed costs offset by EUR -0.03 due
to lower sales prices. Basic earnings per share including non-recurring
items were EUR 0.06.

Operating profit excluding non-recurring items was EUR 139.8 (EUR
106.7) million, which is 31.0% more than in the previous quarter and
4.7% of sales. Operating profits increased in publication paper and
packaging board but decreased in fine paper and wood products;
Merchants remained unchanged. Operating profit including non-recurring
items was EUR 99.9 million.

Operating profit excluding non-recurring items was higher because
production volumes increased and fixed costs decreased, though this was
partly offset by price declines. The maturing hedge contracts,
especially for the US dollar and British pound, had a positive impact
of EUR 22.7 million on profit. This impact is expected to decrease in
the coming quarters.

The impairment test of assets, undertaken in the third quarter
according to IAS rules, confirmed the asset values. Contributing to
this outcome were the profit enhancement programme in the USA and the
forecast market improvements.

Non-recurring items for the period totalling EUR -39.9 million
comprised USD 27.4 (EUR 24.6) million of restructuring charges related
to the cost reduction programme in North America and a further EUR 15.3
million at Corbehem Mill in France. The effect on earnings per share
was EUR -0.03.

Profit before taxes and minority interests excluding non-recurring
items amounted to EUR 107.4 (EUR 86.9) million.

Sales of EUR 2 987.4 million were 2.3% lower than the previous
quarter's EUR 3 057.0 million.

Net financial items were EUR -23.4 (EUR -11.3) million. Net interest
expenses amounted to EUR -49.9 (EUR -51.5) million and net foreign
exchange gains came to EUR 12.2 (EUR 7.9) million. Other financial
items totalled EUR 14.3 (EUR 32.3) million, mostly due to non-cash
valuations of synthetic option hedging instruments and other
derivatives.

The share of associated company results amounted to EUR -9.0 (EUR -8.5)
million. Net taxes totalled EUR -22.0 (EUR -28.3) million, equivalent
to a tax rate of 32.6% (32.6%). The minority interest in profits was
EUR 1.7 (EUR -2.3) million, leaving a net profit for the quarter of 
EUR 47.2 (EUR 56.3) million.

The return on capital employed excluding non-recurring items was 4.6%
(3.6%). Capital employed was EUR 12 157.3 million on 30 September 2003,
a net increase of EUR 111.1 million including EUR 56.5 million related
to currency effects.

The results for the third quarter include the effects of biological
transformation (growth and price) amounting to EUR 30.5 million and
biological produce (harvesting) amounting to EUR -25.6 million,
resulting in a net gain of EUR 4.9 million.

Capital Structure
   
                       IAS 41
EUR                   Adjust-
million   31.12.2002     ment  1.1.2003  30.9.2002  30.6.2003  30.9.2003
Fixed
assets      12 089.4    866.2  12 955.6   12 734.1   12 866.7   12 957.9
Working
capital      1 182.2            1 182.2    1 171.6    1 244.5    1 270.4
Operating 
Capital     13 271.6    866.2  14 137.8   13 905.7   14 111.2   14 228.3
Net tax
liabilities -2 029.2   -243.3  -2 272.5   -2 089.6   -2 065.0   -2 071.0
Capital
Employed    11 242.4    622.9  11 865.3   11 816.1   12 046.2   12 157.3
   
Shareholders’
equity       8 156.9    622.9   8 779.8    7 647.6    8 135.4    8 215.6
Minority
interests       30.4               30.4       53.3       48.9       77.2
Interest-bearing
net 
liabilities  3 055.1            3 055.1    4 115.2    3 861.9    3 864.5
Financing 
Total       11 242.4    622.9  11 865.3   11 816.1   12 046.2   12 157.3


Financing

Cash flow from ongoing operations was EUR 373.8 (EUR 383.3) million and
cash flow after investing activities EUR 87.4 (EUR 40.2) million. Cash
earnings per share excluding non-recurring items were EUR 0.44
(EUR 0.41).

At the end of the period, interest-bearing net liabilities were EUR
3 864.5 million, very similar to the previous quarter. Unutilised
credit facilities and cash and cash-equivalent reserves totalled EUR
2.5 billion.

The debt/equity ratio at 30 September 2003 was 0.47 (0.47) and equity
per share EUR 9.75 (EUR 9.63). The currency effect on equity was EUR
21.0 million, net of the hedging of equity translation risks. Share
buy-backs decreased equity by EUR 22.0 million in the third quarter.
Under the current share buy-back authorisation, effective since 20
March 2003, 18 748 600 R shares were purchased at an average price of
EUR 9.42 and 6 500 A shares at an average price of EUR 9.90. This
represents 0.07% of the current authorisation for A shares and 55.1%
for R shares.

Quarterly Change in Interest-bearing Net Liabilities
                                       Cash 
                                      Flow,          Transla-
                                    Ongoing Structu-     tion  Balance
                                     Opera-      ral   Diffe-    Sheet
EUR million                           tions  Changes    rence   Impact
Operating profit                       95.0      4.9              99.9
Adjustments                           302.4                      302.4
Change in working capital             -23.6              -2.3    -25.9
Cash Flow from Operations             373.8      4.9     -2.3    376.4
Capital expenditure                  -303.1                     -303.1
Disposals                               9.3                        9.3
Other change in fixed assets            7.4     -4.9    -71.1    -68.6
Cash Flow after Investing
Activities                             87.4      0.0    -73.4     14.0
Net financing items (incl.
associated companies)                 -32.4                      -32.4
Taxes paid                            -32.8              16.9    -15.9
Repurchase of own shares              -22.0                      -22.0
Other change in shareholders’
equity and minority interests          32.7              21.0     53.7
Change in Interest-bearing Net
Liabilities                            32.9      0.0    -35.5     -2.6


Capital Expenditure for the Third Quarter and January-September
Capital expenditure for the third quarter totalled EUR 303.1 million,
giving a total for the first nine months of EUR 863.0 million, which
was EUR 59.6 million more than depreciation.

The main project in January-September was the new paper machine 4 at
Langerbrugge in Belgium (EUR 190.4 million). Other major projects were
rebuilding paper machine 3 at Veitsiluoto (EUR 32.0 million) and paper
machine 6 at Maxau in Germany (EUR 23.6 million), the new boiler at
Kvarnsveden in Sweden (EUR 22.9 million), phase 1 of rebuilding paper
machine 26 at Biron in the USA (EUR 20.1 million) and folding boxboard
improvements at Baienfurt in Germany (EUR 19.4 million).


During the third quarter Stora Enso announced an investment of EUR 50
million in construction of a new sawmill at Krustpils in Latvia, in
accordance with the previously announced Baltic area development plan.
The annual capacity of the new sawmill will be 350 000 cubic metres and
it will start up in November 2004.

Construction of the Veracel pulp mill in Brazil is proceeding on
schedule. The foundation stone has been laid and the most important
machinery supply contracts have been agreed. The Veracel project is
treated as an associated company in the Group's accounts.

January-September Results (compared with the same period in 2002)
Sales decreased by EUR 427.0 million to EUR 9 143.5 million, a decline
of 4.5% mainly due to lower prices, especially in paper products.

Operating profit excluding non-recurring items decreased by EUR 262.0
million, or 36.4% to EUR 457.6 million. Profits were lower than in the
first nine months last year in almost all business segments.

The maturing hedge contracts, especially for the US dollar and British
pound, had a positive impact of EUR 84.2 million on profits. This
impact is expected to decrease in the coming quarters.

Profit before taxes and minority interests excluding non-recurring
items decreased by EUR 268.3 million to EUR 323.6 million.

Excluding non-recurring items, earnings per share were EUR 0.25 (EUR
0.45) and the return on capital employed was 5.1% (7.2%). The non-
recurring items in the first nine months this year amounted to EUR 
-39.9 million, compared with EUR -1 177.9 million in the same period
last year.

Changes in the Management Group

Mats Nordlander became Executive Vice President, Stora Enso's Merchants
Division, and President of Papyrus. He also joined Stora Enso's
Management Group on 1 September 2003, when his predecessor Sven Rosman
retired.

Markku Pentikäinen has been appointed Executive Vice President, Stora
Enso Asia Pacific, and member of Stora Enso's Management Group
effective from 1 January 2004, when his predecessor Seppo Hietanen will
retire.

Third Quarter Events 2003

Stora Enso North America Cost Reduction Programme

Stora Enso North America announced the implementation of a USD 65 (EUR
60) million reduction in annual costs through an extension of the
profit enhancement programme of August 2002. These measures are
expected to increase profit per share by EUR 0.04 (in addition to the
EUR 0.05 increase from the August 2002 programme), once the full impact
is achieved by mid 2005. The new programme includes a reduction in
Stora Enso North America's total workforce of about 12% or 700
employees by mid 2005. In addition, 350 of the reductions in the
previously announced profit enhancement programme had still to be
implemented. Stora Enso North America currently employs about 6 050
people. After the programme has been fully implemented, the number of
employees will be about 5 000, compared with about 7 300 at the time of
the acquisition.

Corbehem Mill Restructuring Programme

Stora Enso launched a restructuring programme at Corbehem Mill in
France to secure the site's long-term competitiveness in continuing
depressed market conditions. The programme includes a major
reorganisation of the whole mill, including a decrease of some 160-170
permanent positions by 2006, a variable-cost reduction plan and EUR 60
million investment in paper machine 5 to increase capacity by 55 000
tonnes. A provision of EUR 15.3 million for redundancy payments and
other related costs was entered as a non-recurring item in the third
quarter.

Share Capital and Ownership

A total of 57 441 A shares were converted into R shares during the
period through the continuous conversion process. Converted shares are
recorded monthly in the Finnish Trade Register. The latest conversion
was recorded in the Finnish Trade Register on 15 September 2003.
Following this conversion, the Company has 182 149 326 A shares and
682 038 173 R shares in issue.

A total of 864 000 new R shares are subscribable against warrants under
the terms of the 1997 options programme.

On 30 September 2003 Stora Enso held 6 500 A shares and 21 447 308 R
shares with a nominal value of EUR 36.5 million; these represented 2.5%
of the share capital and 0.9% of the voting rights. On 30 September
2003 the registered share capital of the Company was EUR 1 469.1
million.

Shareholders' equity amounted to EUR 8.2 billion, compared with a
market capitalisation on the Helsinki Stock Exchange on 30 September
2003 of EUR 9.2 billion.

Corporate Governance Issues

The Board of Directors established a Nomination Committee for Stora
Enso Oyj. The main task of the Committee is to give guidance concerning
the composition of the Board and the remuneration of its members. It is
also responsible for preparing proposals on the composition of the
other Board committees. The Nomination Committee comprises three or
four non-executive Board members nominated annually by the Board. The
current members of the Nomination Committee are Claes Dahlbäck
(Chairman), Krister Ahlström and Harald Einsmann.

Outlook

The long-awaited recovery in demand for forest products in Europe is
still not clearly apparent. The macroeconomic environment has not
provided the conditions for sustained improvement in advertising
spending, so demand for advertising-driven paper grades remains
moderate. Demand for the Group's packaging board products, which
depends on general economic activity, remains stable. The outlook for
product prices in Europe is largely stable, except in fine paper, where
downward price pressure persists.

In North America the recovery in economic activity is evident, although
the pace of improvement is slow and somewhat irregular in forest
products. North America is expected to lead the way towards better
conditions in global paper markets. This can be seen in the price
increases being implemented in certain grades.

Fine paper markets in Asia have recovered from the effects of SARS but
are still competitive. However, GDP in the region is growing swiftly,
especially in China.

These challenging market conditions have prompted the Group to
strengthen its focus on implementing a number of cost-reduction
initiatives. In addition to the North America programmes, these
initiatives include mill-by-mill productivity improvement programmes,
fixed and variable cost reduction measures and steps to decrease Group
staff function and IT costs. As announced in the previous Interim
Review, steps have also been taken to ensure capital expenditure in the
2003-04 period remains in line with the Group's depreciation charges.


This report is unaudited.

Helsinki, 23 October 2003
Stora Enso Oyj
Board of Directors


Segments (compared with the previous quarter)
The financial figures reflect the organisational change that came into
effect on 1 May 2003.


PAPER PRODUCT AREA

Publication Paper
EUR million                                                                      

                                                                    Change
   2002   Q1/02   Q2/02   Q3/02    Q4/02    Q1/03    Q2/03   Q3/03 Q3/Q2 %
Sales     
4 715.6 1 189.4 1 143.4 1 159.7  1 223.1  1 058.3  1 042.8  1 086.3    4.2
Operating profit    
  320.1   104.4    63.4    84.1     68.2     36.4     -5.2     39.9
% of sales         
    6.8     8.8     5.5     7.3      5.6      3.4     -0.5      3.7
ROOC, %*      
    7.5     9.2     5.7     7.9      7.0      3.7     -0.5      4.0
Deliveries, 
1 000 t       
  6 807   1 638   1 636   1 703    1 830    1 654    1 678    1 763    5.1
Production volumes, 
1 000 t       
  6 796   1 686   1 651   1 745    1 714    1 739    1 663    1 812    9.0

* ROOC = 100% x Operating profit/Operating capital

Publication paper sales were EUR 1 086.3 million, 4.2% up on the
previous quarter mainly due to higher deliveries. Operating profit was
EUR 39.9 million, up EUR 45.1 million on the previous quarter due to
higher production and sales volumes, and also improved cost
performance, which compensated for low sales prices and unfavourable
exchange rates. Market-related production curtailments totalled 95 000
tonnes (114 000 tonnes) in Europe and 11 000 tonnes (29 000 tonnes) in
North America.

In Europe demand for newsprint and uncoated magazine paper has been
rather stable at the previous year's levels, but there has been some
growth in coated magazine paper in 2003. Lower-margin overseas
deliveries increased. Prices have stayed low and almost unchanged, and
competition remains tough. The direct and indirect effects of the
strong euro are also depressing paper industry revenues. Producer
inventories are at typically high seasonal levels, particularly in
magazine paper grades, whereas customer inventories have not changed
significantly.

In North America demand for magazine papers improved somewhat in the
third quarter. Advertising page counts in magazines are similar to a
year ago. During 2003, coated (LWC) and super-calendered (SC) paper
prices have shown modest improvement from historically low levels and
some further rises are being implemented. Producer and customer
inventories are up on the previous quarter. Newsprint volumes were
stable during the quarter, with prices up slightly.

Fine Paper
EUR million  
                                                                   Change
            2002  Q1/02  Q2/02  Q3/02  Q4/02  Q1/03  Q2/03  Q3/03 Q3/Q2 %
Sales    3 427.4  909.2  873.6  832.4  812.2  852.3  793.9  788.5   -0.7
Operating 
profit     303.7   95.1   78.1   75.6   54.9   81.3   40.9   23.7  -42.1
% of
sales        8.9   10.5    8.9    9.1    6.8    9.5    5.2    3.0
ROOC, %*     7.7    9.1    7.8    7.9    6.0    8.8    4.5    2.7
Deliveries, 
1 000 t    3 432    874    866    859    833    885    895    894   -0.1
Production 
volumes, 
1 000 t    3 477    888    866    876    847    894    889    922    3.7

* ROOC = 100% x Operating profit/Operating capital

Fine paper sales were EUR 788.5 million, similar to the previous
quarter. Operating profit was EUR 23.7 million, down 42.1% on the
previous quarter. Several one-time items had a negative impact on the
result, including a forest fire near the Celbi Mill in Portugal (EUR 6
million), lost production relating to an accident at the Skutskär Mill
in Sweden (EUR 6 million), and a power outage at the Nymölla Mill in
Sweden (EUR 3 million). Market-related production curtailments totalled
23 000 tonnes (19 000 tonnes) in Europe and 14 000 tonnes (13 000
tonnes) in North America.

In Europe demand was seasonally lower than in the previous quarter, but
the same as or higher than in the previous two years. Volumes have been
maintained thanks to lower-margin overseas sales. Mill stocks of coated
fine paper have increased, while distributor stocks have remained
stable, so price pressure will persist. European demand for uncoated
paper was seasonally weak during the summer holiday months and
increasing competition from Eastern Europe is creating price pressure.
Stock levels are normal at producers and distributors.

In North America deliveries were seasonally up compared with the second
quarter and down slightly compared with a year ago. Prices were
generally stable. Producer and customer inventories rose during the
quarter and remain high.


Merchants

Sales were EUR 139.5 million, 10.2% down on the previous quarter mainly
due to lower volume. There was an operating loss of EUR 1.5 million, a
deterioration of EUR 0.3 million compared with the previous quarter.

Demand is still weak in Western Europe. Price pressure has persisted in
most market areas, although September brought some seasonal recovery.

No significant increase in overall demand is foreseen, but the supply
and demand balance is expected to improve gradually.

The unit is currently being reorganised to improve profitability.

PACKAGING PRODUCT AREA
                                                                    Change
million      2002  Q1/02  Q2/02  Q3/02  Q4/02  Q1/03  Q2/03  Q3/03 Q3/Q2 %
Sales     2 720.2  681.3  696.4  675.9  666.6  699.0  711.4  691.1    -2.9
Operating 
profit      354.7   98.6   65.7  110.8   79.6   90.5   66.6   88.5    32.9
% of sales   13.0   14.5    9.4   16.4   11.9   12.9    9.4   12.8
ROOC, %*     13.5   14.7   10.0   17.0   12.2   13.9   10.2   13.5
Deliveries, 
1 000 t     2 909    711    749    734    715    756    781    755    -3.3
Production volumes, 
1 000 t     2 973    751    742    740    741    788    763    767     0.5

* ROOC = 100% x Operating profit/Operating capital

Packaging board sales were EUR 691.1 million. Operating profit was EUR
88.5 million, up EUR 21.9 million due to lower costs than in the
previous quarter. Market-related production curtailments totalled
27 000 tonnes (25 000 tonnes) mainly in consumer boards and industrial
papers.

Demand and prices have been stable in most products. Sales to Asia and
the Americas were affected by the weak US dollar.

Demand and prices are generally expected to remain stable in the near
future, although seasonal weakening is anticipated in the last quarter
in some businesses. The US dollar exchange rate will affect the
competitiveness of European suppliers.

The fourth quarter results will, as usual, be affected by holiday
season maintenance stoppages.


FOREST PRODUCTS PRODUCT AREA


Timber
EUR                                                                 Change
million      2002  Q1/02  Q2/02  Q3/02  Q4/02  Q1/03  Q2/03  Q3/03 Q3/Q2 %
Sales     1 235.2  286.1  320.8  314.1  314.2  316.5  385.6  335.5   -13.0
Operating 
profit       46.8   11.2   14.1    9.7   11.8    7.3   15.2   -4.4
% of sales    3.8    3.9    4.4    3.1    3.8    2.3    3.9   -1.3
ROOC, %*     11.1   10.2   13.4    9.2   11.2    6.1   10.9   -2.7
Deliveries, 
1 000 m3    5 112  1 203  1 344  1 252  1 313  1 283  1 644  1 337   -18.7
Production volume,  
1 000 m3    5 157  1 235  1 288  1 277  1 357  1 406  1 648  1 440   -12.6

* ROOC = 100% x Operating profit/Operating capital

Wood product sales were EUR 335.5 million, down 13.0% on the previous
quarter mainly due to lower production and deliveries caused by several
investment stoppages and the seasonal slowdown in business activity
during the summer. As a result, there was an operating loss of EUR 4.4
million, a decrease of EUR 19.6 million on the previous quarter, owing
in part to lost production caused by the investment projects in Finland
and the Baltic area during the period.

Despite good demand, the market balance has been undermined by high
production volumes in Europe and increasing supplies from Russia. Key
factors influencing market balance in Europe in the near future will be
volatility and the recent fall in US prices with the weakening of the
US dollar, resulting in an uncertain market outlook, especially in
Nordic whitewood.

Demand for wood products is expected to remain relatively stable,
supported by steady housing markets in the USA and Japan, and repair
and maintenance activity in all market areas. However, the market
balance in all regions is expected to remain weak due to continuing
oversupply.

Wood Supply Europe

Sales were EUR 475.0 million, down 9.8% on the previous quarter mainly
due to planned stoppages at Swedish mills. The operating profit was EUR
23.3 million, down 31.5% on the previous quarter due to a challenging
sawlog supply situation in Finland and Estonia, and decreased
deliveries from the Group's forests in Sweden. Logging in the Group's
forests at 1.1 million cubic metres was 23% less than in the previous
quarter.

Deliveries to Finland, Sweden, Germany and the Baltic States totalled
10.3 million cubic metres (solid wood under bark), down 9% on the
previous quarter. Deliveries to the Group's mills in Europe totalled
8.5 million cubic metres, down 3% on the previous quarter.


Financials?Key
Ratios     Q1/02   Q2/02   Q3/02   Q4/02    2002   Q1/03   Q2/03   Q3/03
Earnings per
share (basic),
 EUR        0.18    0.15   -1.12    0.54   -0.25    0.10    0.07    0.06
Earnings  per
share excl.
non recurring items,
 EUR        0.18    0.12    0.15    0.12    0.57    0.10    0.07    0.09
Cash earnings
per share
(CEPS), EUR 0.55    0.52    0.50    0.81    2.49    0.43    0.41    0.42
CEPS excl.
non recurring items,
 EUR        0.55    0.48    0.51    0.44    1.97    0.43    0.41    0.44
Return on capital 
employed
(ROCE), %    7.8     7.1   -30.0    10.6    -1.6     7.1     3.6     3.3
ROCE
excl. non recurring 
items,  %    7.8     5.6     7.9     7.1     7.1     7.1     3.6     4.6
Returnon equity (ROE),
 %           7.2     6.2   -45.2    23.7    -3.3     4.2     2.9     2.2
Debt/equity
ratio       0.59    0.46    0.53    0.37    0.37    0.46    0.47    0.47
Equity per
share, EUR  9.81    9.87    8.69    9.36    9.36    9.53    9.63    9.75
Equity
ratio, %    42.7    45.2    42.6    45.0    45.0    43.9    44.5    44.9
Operating profit, 
% of sales   8.5     7.5   -31.3     9.5    -1.2     6.8     3.5     3.3
Operating profit
excl. non
recurring items, 
% of sales   8.5     5.9     8.2     6.4     7.2     6.8     3.5     4.7
Capital expenditure, 
EURmillion 155.0   183.0   208.1   331.4   877.6   235.8   324.1   303.1
Capital expenditure, 
% of sales   4.9     5.7     6.7    10.3     6.9     7.6    10.6    10.1
Capital employed, 
EUR 
million   14 110  12 990  11 816  11 242  11 242  11 996  12 046  12 157
Interest-bearing
net liabilities,
EUR 
million    5 263   4 113   4 115   3 055   3 055   3 763   3 862   3 865
Average number
of 
employees 42 572  43 568  43 757  43 853  43 853  43 386  44 506  44 737
Average number
of shares (million)
- periodic 896.9   896.5   888.5   876.8   889.6   866.2   852.9   844.5
- cumula-
  tive     896.9   895.8   894.0   889.6   889.6   866.2   859.5   854.4
- cumulative,
  diluted  897.8   896.8   894.9   890.4   890.4   866.4   860.5   855.6


Key Exchange Rates for the Euro
One Euro is             Closing Rate               Average Rate
                 31 Dec 2002   30 Sep 2003   31 Dec 2002   30 Sep 2003
SEK                 9.1528       8.9625        9.1551        9.1621
USD                 1.0487       1.1652        0.9455        1.1124
GBP                 0.6505       0.6986        0.6285        0.6903
CAD                 1.6550       1.5717        1.4836        1.5874



Condensed Consolidated Income Statement
                                                    
EUR million                                 2002 Q1-Q3/2002 Q1-Q3/2003
   
Sales                                   12 782.6    9 570.5    9 143.5
Other operating income                     176.1      201.9      109.5
Materials & services                    -6 342.9   -4 750.0   -4 648.1
Freight & sales commissions             -1 240.9     -913.8     -970.4
Personnel expenses                      -2 282.0   -1 711.6   -1 698.0
Other operating expenses                  -802.6     -655.9     -631.8
Depreciation, amortisation and
impairment charges                      -2 441.9   -2 199.4     -887.0
Operating Profit                          -151.6     -458.3      417.7
Share of results of associated
companies                                   14.6       17.7      -18.0
Net financial items                       -206.2     -145.4     -116.0
Profit before Tax and Minority
Interests                                 -343.2     -586.0      283.7
Income tax expense                         120.9     -111.1      -91.1
Profit after Tax                          -222.3     -697.1      192.6
Minority interests                           0.1       -2.6       -3.8
Net Profit for the Period                 -222.2     -699.7      188.8
   
Key Ratios
Basic earnings per share, EUR              -0.25      -0.78       0.22
Diluted earnings per share, EUR            -0.25      -0.78       0.22


Condensed Consolidated Cash Flow Statement
EUR million                               2002  Q1-Q3/2002  Q1-Q3/2003
   
Cash Flow from Operating
Activities
Operating profit                        -151.6      -458.3       403.8
Adjustments                            2 256.2     2 018.0       879.9
Change in net working capital            -52.1        25.6       -57.0
Change in short-term interest
bearing receivables                     -495.1       225.2       639.6
Cash Flow Generated by Operations      1 557.4     1 810.5     1 866.3
Net financial items                      -69.1      -155.7      -141.7
Income taxes paid                        -62.1      -210.8      -222.7
Net Cash Provided by Operating
Activities                             1 426.2     1 444.0     1 501.9
   
Acquisitions                             -56.3       -32.8      -142.8
Proceeds from sale of fixed
assets and shares                        751.0       202.1        12.9
Capital expenditure                     -877.6      -546.2      -863.0
Proceeds from the long-term
receivables, net                         -74.4       -16.3       -97.9
Net Cash Used in Investing
Activities                              -257.3      -393.2    -1 090.8
   
Cash Flow from Financing
Activities
Change in long-term liabilities         -487.6      -582.0      -361.7
Change in short-term borrowings          -56.3       -36.0       632.3
Dividends paid                          -403.6      -403.6      -387.7
Purchase of own shares                  -286.9      -195.9      -267.9
Net Cash Used in Financing
Activities                            -1 234.4    -1 217.5      -385.0
   
Net Increase in Cash and Cash
Equivalents                              -65.5      -166.7        26.1
Cash and bank in acquired
companies                                    -           -         4.2
Translation differences on cash
holdings                                 -13.0        -6.3        -4.2
Cash and bank at the beginning of
period                                   247.0       247.0       168.5
Cash and Cash Equivalents at
Period End                               168.5        74.0       194.6


Property, Plant and Equipment, Intangible Assets and Goodwill
                                                          
EUR million                             2002  Q1-Q3/2002    Q1-Q3/2003
Carrying value at 1 January         14 701.2    14 701.2   12 807.1  *
Acquisition of subsidiary
companies                              150.4        32.8      227.3
Additions                              877.6       546.2      863.0
Disposals                             -571.1       -11.9       -5.8
Depreciation, amortisation and
impairment                          -2 441.9    -2 199.4     -887.0
Translation difference and other      -775.3      -509.8     -196.5
Balance Sheet Total                 11 940.9    12 559.1   12 808.1
   
Acquisitions of Subsidiary
Companies
Property, plant and equipment          150.4         6.3      207.1
Borrowings                             -71.1           -      -94.9
Other assets, less liabilities         -23.0           -       -2.1
Fair value of net assets                56.3         6.3      110.1
Goodwill                                   -        26.5       20.2
Total Purchase Consideration            56.3        32.8      130.3

* Includes the initial IAS 41 valuation of forest of EUR 866.2 million


Borrowings
EUR million                               2002  Q1-Q3/2002  Q1-Q3/2003
   
Non-current borrowings                 4 525.2     4 572.7     4 114.5
Current borrowings                       650.4       881.3     1 172.6
                                       5 175.6     5 454.0     5 287.1
   
Carrying value at 1 January            6 409.5     6 409.5     5 175.6
Debt acquired with new
subsidiaries                              71.1           -        94.9
Proceeds from / -payments of
borrowings (net)                        -662.4      -442.5       240.9
Translation difference and other        -642.6      -513.0      -224.3
Total Borrowings                       5 175.6     5 454.0     5 287.1


Condensed Consolidated Balance Sheet


Assets
                                  IAS 41
                          31 Dec Adjust-     1 Jan    30 Sep    30 Sep 
EUR million                 2002    ment      2003      2002      2003
   
Fixed and Other
Long-term Assets
Fixed assets         O 11 940.9    866.2  12 807.1  12 559.1  12 808.0
Investment in
associated
companies            I    211.7              211.7     190.5     239.9
Listed securities    I    169.2              169.2     164.2     217.3
Unlisted shares      O    148.5              148.5     175.0     149.9
Non-current loan
receivables          I    480.6              480.6     498.6     484.9
Deferred tax
assets               T     52.7               52.7       9.7      51.9
Other non-current
assets               O    241.1              241.1     224.8     190.8
                       13 244.7    866.2  14 110.9  13 821.9  14 142.7
   
Current Assets
Inventories          O  1 565.0            1 565.0   1 602.2   1 679.5
Tax receivables      T    243.1              243.1     222.2     202.1
Operative
receivables          O  1 902.4            1 902.4   1 929.6   1 956.7
Interest-bearing
receivables          I  1 090.5            1 090.5     411.5     285.9
Cash and cash
equivalents          I    168.5              168.5      74.0     194.6
                        4 969.5        -   4 969.5   4 239.5   4 318.8
   
Total assets           18 214.2    866.2  19 080.4  18 061.4  18 461.5


Shareholders' Equity and Liabilities
                                  IAS 41
                          31 Dec Adjust-     1 Jan    30 Sep    30 Sep 
EUR million                 2002    ment      2003      2002      2003
   
Shareholders’
Equity                  8 156.9    622.9   8 779.8   7 647.6   8 215.6
Minority Interests         30.4               30.4      53.3      77.2
   
Long-term
Liabilities
Pension provisions   O    747.0              747.0     759.9     734.3
Other provisions     O    194.5              194.5     148.9     192.8
Deferred tax
liabilities          T  1 787.3    243.3   2 030.6   1 766.7   1 900.5
Long-term debt       I  4 525.2            4 525.2   4 572.7   4 114.5
Long-term
operative
liabilities          O     36.9               36.9      32.9      17.4
                        7 290.9    243.3   7 534.2   7 281.1   6 959.5
Current Liabilities  
Current portion
of long-term debt    I    306.5              306.5     400.7     204.5
Interest-bearing
liabilities          I    343.9              343.9     480.6     968.1
Operative
liabilities          O  1 547.9            1 547.9   1 643.3   1 612.1
Tax liabilities      T    537.7              537.7     554.8     424.5
                        2 736.0        -   2 736.0   3 079.4   3 209.2
   
Total Liabilities      10 026.9    243.3  10 270.2  10 360.5  10 168.7
   
Total Shareholders’ 
Equity and 
Liabilities            18 214.2    866.2  19 080.4  18 061.4  18 461.5

Items designated with "O" are included in operating capital.
Items designated with "I" are included in interest-bearing net
liabilities.
Items designated with "T" are included in the tax liability.


Statement of Changes in Shareholders' Equity
                                Trea-                 Retained
               Share    Share    sury                    Earn-
EUR million  Capital  Premium  Shares    OCI     CTA      ings   Total
   
Balance at
1 January
2002         1 541.5  1 639.5  -125.5   58.6   -50.1  5 925.0  8 989.0
Repurchase
of Stora
Enso Oyj
shares             -        -  -286.8      -       -        -   -286.8
Cancellation 
of Stora
Enso Oyj
shares         -13.8    -83.6    97.4      -       -        -        -
Dividend
(EUR 0.45
per share)         -        -       -      -       -   -403.6   -403.6
Share issue      1.9     -1.9       -      -       -        -        -
Net loss
for the
period             -        -       -      -       -   -222.2   -222.2
OCI entries        -        -       -  174.8       -        -    174.8
Translation
adjustment         -        -       -      -   -94.3        -    -94.3
Balance at
31 December
2002         1 529.6  1 554.0  -314.9  233.4  -144.4  5 299.2  8 156.9
Effect of
adopting
IAS 41             -        -       -      -       -    622.9    622.9
Balance at
1 January 2003 
(restated)   1 529.6  1 554.0  -314.9  233.4  -144.4  5 922.1  8 779.8
Repurchase
of Stora
Enso Oyj
shares             -        -  -267.9      -       -        -   -267.9
Cancellation 
of Stora
Enso Oyj
shares         -60.5   -371.5   376.0      -    56.0        -      0.0
Dividend
(EUR 0.45
per share)         -        -       -      -       -   -387.7   -387.7
Net profit
for the
period             -        -       -      -       -    188.8    188.8
OCI entries        -        -       -  -91.9       -        -    -91.9
Translation
adjustment         -        -       -      -   -14.9      9.4     -5.5
Balance at
30 September 
2003         1 469.1  1 182.5  -206.8  141.5  -103.3  5 732.6  8 215.6

CTA = Cumulative Translation Adjustment
OCI = Other Comprehensive Income


Commitments and Contingencies
EUR million                      31 Dec 2002  30 Sep 2002  30 Sep 2003
   
On own Behalf
Pledges given                            0.8          8.0          0.9
Mortgages                              111.4        127.7         98.7
On Behalf of Associated
Companies
Mortgages                                1.0          1.0          1.0
Guarantees                              59.3         66.2         51.1
On Behalf of Others
Pledges given                            0.3          0.3          0.4
Mortgages                                0.0            -          0.4
Guarantees                              16.8         98.0         15.6
Other Commitments, Own
Leasing commitments, in next
12 months                               41.5         42.1         37.7
Leasing commitments, after
next 12 months                         237.2        250.3        200.7
Pension liabilities                      2.7          2.2          3.1
Other commitments                       71.5         79.6         66.3
Total                                  542.5        675.4        475.9
   
Pledges given                            1.1          8.3          1.3
Mortgages                              112.4        128.7        100.1
Guarantees                              76.1        164.2         66.7
Leasing commitments                    278.7        292.4        238.4
Pension liabilities                      2.7          2.2          3.1
Other commitments                       71.5         79.6         66.3
Total                                  542.5        675.4        475.9


Net Fair Values of Derivative Financial Instruments
EUR million
                                        30 Sep
                          31 Dec2002      2002       30 Sep 2003
                                                Posi-
                                                 tive  Negati
                                 Net             Fair      ve      Net
                                Fair  Net Fair   Val-    Fair     Fair
                              Values    Values    ues  Values   Values
Interest rate swaps            202.8     204.9  153.9    -2.4    151.5
Interest rate options            0.0       0.8    1.2     0.0      1.2
Cross-currency swaps           -21.6     -27.8    2.0   -11.3     -9.3
Forward contracts              180.3      53.2   91.9   -28.0     63.9
FX Options                       0.0       0.0    1.6    -9.6     -8.0
Commodity contracts            252.4      61.3   94.3    -0.9     93.4
Equity swaps                   -55.5     -61.3    8.7   -46.2    -37.5
Total                          558.4     231.1  353.6   -98.4    255.2


Nominal Values of Derivative Financial Instruments
EUR million                   31 Dec 2002   30 Sep 2002    30 Sep 2003
Interest Rate Derivatives
Interest rate swaps
Maturity under 1 year               109.3         109.9           50.6
Maturity 2-5 years                  922.8         837.8          856.1
Maturity 6-10 years               1 088.1       1 213.6          869.3
Maturity over 10 years                  -          22.6              -
                                  2 120.2       2 183.9        1 776.0
Interest rate options                   -         200.0          154.5
Total                             2 120.2       2 383.9        1 930.5
   
Foreign Exchange Derivatives
-  Cross-currency swap
   agreements                       216.5         225.6          134.2
-  Forward contracts              3 902.4       4 370.4        4 371.9
-  FX Options                           -          19.5          818.7
Total                             4 118.9       4 615.5        5 324.8
   
Commodity derivatives
Commodity contracts                 538.6         500.6          532.1
Total                               538.6         500.6          532.1
   
Equity swaps
Equity swaps                        216.5         216.5          308.4
Total                               216.5         216.5          308.4


Sales by Product Area
EUR
million       
    2001    Q1/02   Q2/02   Q3/02   Q4/02     2002   Q1/03   Q2/03   Q3/03
Publication Paper      
 5 414.4  1 189.4 1 143.4 1 159.7 1 223.1  4 715.6 1 058.3 1 042.8 1 086.3
Fine Paper      
 3 670.4    909.2   873.6   832.4   812.2  3 427.4   852.3   793.9   788.5
Merchants            
   840.3    211.7   183.4   155.8   169.7    720.6   176.1   155.4   139.5
Other       
  -421.3    -94.7   -68.7   -62.5   -63.6   -289.5   -72.0   -69.0   -70.4
Paper Product
Area       
 9 503.8  2 215.6 2 131.7 2 085.4 2 141.4  8 574.1 2 014.7 1 923.1 1 943.9
Packaging Product Area     
 2 671.1    681.3   696.4   675.9   666.6  2 720.2   699.0   711.4   691.1
Timber Products   
 1 180.5    286.1   320.8   314.1   314.2  1 235.2   316.5   385.6   335.5
Forest Operations         
 1 825.6    497.9   479.2   464.7   516.9  1 958.7   534.2   526.7   475.0
Other       
  -476.0   -132.6  -124.6  -135.8  -138.3   -531.3  -143.5  -149.9  -131.7
Forest Products
Product Area      
 2 530.1    651.4   675.4   643.0   692.8  2 662.6   707.2   762.4   678.8
Other     
-1 196.2   -319.4  -270.5  -295.7  -288.7 -1 174.3  -321.8  -339.9  -326.4
Total     
13 508.8  3 228.9 3 233.0 3 108.6 3 212.1 12 782.6 3 099.1 3 057.0 2 987.4


Operating Profit by Product Area excluding Non-recurring Items and
Goodwill
EUR
million     2001 Q1/02 Q2/02    Q3/02 Q4/02      2002  Q1/03  Q2/03  Q3/03
Publication
Paper      855.7 104.4  63.4     84.1  68.2     320.1   36.4   -5.2   39.9
Fine Paper 396.5  95.1  78.1     75.6  54.9     303.7   81.3   40.9   23.7
Merchants   -7.2  -1.0   1.9      1.2   3.4       5.5    1.5   -1.2   -1.5
Paper Product
Area     1 245.0 198.5 143.4    160.9 126.5     629.3  119.2   34.5   62.1
Packaging Product 
Area       344.2  98.6  65.7    110.8  79.6     354.7   90.5   66.6   88.5
Timber 
Products    12.6  11.2  14.1      9.7  11.8      46.8    7.3   15.2   -4.4
Forest 
Operations  88.1  23.4  25.7     25.3  21.9      96.3   34.7   34.0   23.3
Forest Products
Product  
Area       100.7  34.6  39.8     35.0  33.7     143.1   42.0   49.2   18.9
Other 
Areas      -43.2 -16.6 -17.5     -9.3  -8.4     -51.8   -8.5  -15.6   -6.2
Goodwill 
amortisation      
          -151.5 -41.1 -41.2    -42.0 -24.5    -148.8  -32.1  -28.0  -23.5
Operating Profit excl.
non recurring 
Items    1 495.2 274.0 190.2    255.4 206.9     926.5  211.1  106.7  139.8
Non recurring 
items       -8.3     -  51.6 -1 229.5  99.8  -1 078.1      -      -  -39.9
Operating Profit
 (IAS)   1 486.9 274.0 241.8   -974.1 306.7    -151.6  211.1  106.7   99.9
Net financial 
items     -343.5 -45.2 -44.0    -56.2 -60.8    -206.2  -81.3  -11.3  -23.4
Associated 
companies   79.6  11.7   8.4     -2.4  -3.1      14.6   -0.5   -8.5   -9.0
Profit Before
Tax and
Minority Interests        
         1 223.0 240.5 206.2 -1 032.7 242.8    -343.2  129.3   86.9   67.5
Income tax
expense   -299.6 -79.4 -68.3     36.6 232.0     120.9  -40.8  -28.3  -22.0
Profit after
Tax        923.4 161.1 137.9   -996.1 474.8    -222.3   88.5   58.6   45.5
Minority 
interests    2.9  -0.1   0.1     -2.6   2.7       0.1   -3.2   -2.3    1.7
Net Profit 926.3 161.0 138.0   -998.7 477.5    -222.2   85.3   56.3   47.2

Operating Profit by Product Area
EUR
million     2001 Q1/02 Q2/02     Q3/02  Q4/02    2002  Q1/03  Q2/03  Q3/03
Publication
Paper      785.8  85.5 45.3    -970.5   83.5  -756.2   28.5  -13.4    2.3
Fine Paper 330.7  80.2  63.5    -117.5   47.1    73.3   70.4   30.3    2.8
Merchants  -10.0  -1.7 -25.2       0.8    1.5   -24.6    0.9   -1.7   -2.1
Paper Product
Area     1 106.5 164.0  83.6  -1 087.2  132.1  -707.5   99.8   15.2    3.0
Packaging 
Product 
Area       333.5  96.3  58.3     108.8   78.3   341.7   84.0   65.1   86.6
Timber 
Products     5.2   7.9   9.4       6.5    8.6    32.4    3.3    9.1   -5.6
Forest
Operations  88.1  23.4  25.7      25.3   47.8   122.2   34.7   34.0   23.2
Forest Products
Product 
Area        93.3  31.3  35.1      31.8   56.4   154.6   38.0   43.1   17.6
Other      -46.4 -17.6  64.8     -27.5   39.9    59.6  -10.7  -16.7   -7.3
Operating 
Profit   1 486.9 274.0 241.8    -974.1  306.7  -151.6  211.1  106.7   99.9
Net financial 
items     -343.5 -45.2 -44.0     -56.2  -60.8  -206.2  -81.3  -11.3  -23.4
Associated 
companies   79.6  11.7   8.4      -2.4   -3.1    14.6   -0.5   -8.5   -9.0
Profit Before
Tax and
Minority 
Interests
         1 223.0 240.5 206.2  -1 032.7  242.8  -343.2  129.3   86.9   67.5
Income tax
expense   -299.6 -79.4 -68.3      36.6  232.0   120.9  -40.8  -28.3  -22.0
Profit after
Tax        923.4 161.1 137.9    -996.1  474.8  -222.3   88.5   58.6   45.5
Minority
interests    2.9  -0.1   0.1      -2.6    2.7     0.1   -3.2   -2.3    1.7
Net Profit 926.3 161.0 138.0    -998.7  477.5  -222.2   85.3   56.3   47.2



Stora Enso Shares

Closing
Price            Helsinki, EUR        Stockholm, SEK      New York, USD
              Series A   Series R  Series A   Series R        ADRs
July           10.93      11.18     102.00     101.50         12.27
August         11.80      11.86     108.00     108.00         12.89
September      10.55      10.63     95.50       94.00         12.24


Trading
Volume              Helsinki             Stockholm          New York
                                     Series
             Series A   Series R       A      Series R        ADRs
July          76 190    75 386 420  220 080  30 820 042     2 097 100
August        83 099    45 531 661  127 647  20 534 139     2 150 100
September     62 304    64 657 121  251 055  28 603 093     1 449 100
Total         221 593  185 575 202  598 782  79 957 274     5 696 300


www.storaenso.com
www.storaenso.com/investors

Publication dates for financial information:

Results for 2003                             4 February 2004
Interim Review for January - March 2004        28 April 2004
Interim Review for January - June 2004          28 July 2004
Interim Review for January - September 2004  27 October 2004

Annual General Meeting                         18 March 2004


It should be noted that certain statements herein which are not
historical facts, including, without limitation those regarding
expectations for market growth and developments; expectations for
growth and profitability; and statements preceded by "believes",
"expects", "anticipates", "foresees", or similar expressions, are
forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995. Since these
statements are based on current plans, estimates and projections, they
involve risks and uncertainties, which may cause actual results to
materially differ from those expressed in such forward-looking
statements.  Such factors include, but are not limited to:  (1)
operating factors such as continued success of manufacturing activities
and the achievement of efficiencies therein, continued success of
product development, acceptance of new products or services by the
Group's targeted customers, success of the existing and future
collaboration arrangements, changes in business strategy or development
plans or targets, changes in the degree of protection created by the
Group's patents and other intellectual property rights, the
availability of capital on acceptable terms; (2) industry conditions,
such as strength of product demand, intensity of competition,
prevailing and future global market prices for the Group's products and
the pricing pressures thereto, price fluctuations in raw materials,
financial condition of the customers and the competitors of the Group,
the potential introduction of competing products and technologies by
competitors; and (3) general economic conditions, such as rates of
economic growth in the Group's principal geographic markets or
fluctuations in exchange and interest rates.


STORA ENSO OYJ







p.p.    Jussi Siitonen                     Jukka Marttila


 


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