Stora Enso Interim Review January ? September 2004

STORA ENSO OYJ  Stock Exchange Release 27 October 2004 at 13.00

Stora Enso Interim Review January – September 2004

Profitability improves due to increasing demand and positive impact from
the North American Profit Enhancement Programme


Third Quarter Results (compared with previous quarter)
Stora Enso's earnings per share excluding non-recurring items were
EUR 0.10 (EUR 0.06). Operating profit excluding non-recurring items was
EUR 131.6 (EUR 58.5) million, which is EUR 73.1 million more than in the
previous quarter and 4.3% of sales. Profit before taxes and minority
interests excluding non-recurring items amounted to 
EUR 114.8 (EUR 49.0) million. There were two non-recurring items in the 
third quarter with a total positive effect of USD 90.9 (EUR 74.1) million 
on operating profit consisting of a reversal of expenses already taken 
in respect of various US retiree healthcare programmes and the increased 
cost associated with the future reduction of maintenance personnel in 
the USA.

Sales at EUR 3 033.1 million were slightly lower than the previous
quarter's EUR 3 102.9 million. Cash flow from ongoing operations was 
EUR 448.1 (EUR 138.5) million and cash flow after investing activities 
EUR 127.1 (EUR -186.7) million. Cash earnings per share excluding non
recurring items were EUR 0.45 (EUR 0.43). Net financial items were 
EUR -27.0 (EUR -26.2) million. Market-related production curtailments 
totalled 61 000 tonnes (98 000 tonnes).


                     
EUR million   2002      2003 Q1-Q3/03 Q1-Q3/04    Q3/03    Q2/04    Q3/04
Sales     12 782.6  12 172.3  9 143.5  9 153.9  2 987.5  3 102.9  3 033.1
EBITDA1)2) 2 145.9   1 710.6  1 334.3  1 175.7    440.2    363.3    418.4
Operating 
profit2)     900.4     525.8    448.4    293.5    136.8     58.5    131.6
Non-recurring
items     -1 078.1    -108.4    -39.9    189.8    -39.9        -     74.1
Operating
margin2), %    7.0       4.3      4.9      3.2      4.6      1.9      4.3
Operating 
profit      -177.7     471.4    408.5    483.3     96.9     58.5    205.7
Profit before
tax and
minority
interests2)  708.8     319.2    314.4    244.6    104.4     49.0    114.8
Profit before
tax and
minority
interests   -369.3     210.8    274.5    434.4     64.5     49.0    188.9
Net profit
for the
period      -240.7     137.9    182.3    589.7     45.1     51.9    130.9
   
EPS2),Basic,
EUR           0.55      0.24     0.24     0.23     0.08     0.06     0.10
EPS,Basic,EUR-0.27      0.16     0.21     0.71     0.05     0.06     0.16
CEPS2)3), EUR 1.95      1.63     1.28     1.29     0.44     0.43     0.45
ROCE2),%       7.0       4.5      5.0      3.5      4.6      2.2      4.9


1)      EBITDA = Earnings before Interest, Taxes, Depreciation and
Amortisation
2)      Excluding net non-recurring items. Exceptional transactions that
are not related to normal business operations are accounted for as 
non-recurring items. The most common non-recurring items are capital 
gains, additional write-downs, restructuring provisions and penalties. 
Non-recurring items are normally specified individually if they exceed 
one cent per share.
3)      CEPS = (Net profit for the period + depreciation and
amortisation)/average number of shares


Outlook
Commenting on the outlook, Stora Enso’s CEO Jukka Härmälä said,
"In Europe economic recovery is increasing demand for paper and
paperboard. Demand for publication paper continues to grow and price
rises are expected at the beginning of next year. Demand for fine paper
is also expected to be strong during the rest of the year. Some price
increases are being implemented in the last quarter of this year in
coated and uncoated fine paper. Demand for packaging boards is firm and
moderate price increases are underway. In wood products the redwood
market remains oversupplied, whereas the whitewood market is balanced and
prices are relatively stable."

In North America demand for magazine paper remains strong and further
price rises will be realised for spot customers in the fourth quarter and
for contract customers in the beginning of next year. Demand for coated
fine paper is strong and further price increases are expected in the
fourth quarter.

Economic growth in Asia continues. Publication and fine paper prices are
strengthening.

Further weakening of the US dollar and increasing oil prices may have a
negative effect on the outlook.

The annual holiday shutdowns, mainly in Finland, will once again have a
negative impact on the Group's fourth quarter results.



For further information, please contact:
Jukka Härmälä, Chief Executive Officer, tel. +358 2046 21404
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 7775 788 659






Stora Enso Interim Review January – September 2004


Summary of Third Quarter Results
*       Sales were EUR 3 033.1 million; previous quarter 
EUR 3 102.9 million.
*       Operating profit excluding non-recurring items was 
EUR 131.6 million;previous quarter EUR 58.5 million.
*       Profit before tax and minority items excluding non-recurring
items was EUR 114.8 million; previous quarter EUR 49.0 million.
*       Earnings per share excluding non-recurring items were EUR 0.10;
previous quarter EUR 0.06.
*       Cash earnings per share excluding non-recurring items were 
EUR 0.45;previous quarter EUR 0.43.
*       Non-recurring items totalling EUR 74.1 million increased earnings
per share by EUR 0.05.


Continuing economic recovery has improved demand for many of the
Group's products. Deliveries in European markets increased slightly in
all paper grades, while packaging board deliveries were somewhat lower,
largely for seasonal reasons. Paper prices were generally similar to the
previous quarter and packaging board prices remained stable.

Demand for wood products stayed strong but the oversupply of redwood in
Europe persists. Deliveries were lower than in the previous quarter for
seasonal reasons and prices stabilised.

In North America demand for magazine and coated fine paper continued to
strengthen and prices have increased in these grades. The Profit
Enhancement Programme has started to have a positive impact.

Market-related production curtailments totalled 61 000 tonnes in Europe
and none in North America, compared with the previous quarter's total of
98 000 tonnes, which was all in Europe.

Paper and board deliveries totalled 3 586 000 tonnes, which is 
13 000 tonnes more than the previous quarter's 3 573 000 tonnes. 
Production totalled 3 725 000 tonnes (3 556 000 tonnes). Deliveries of 
wood products totalled 1 595 000 cubic metres, compared with the previous 
quarter's 1 777 000 cubic metres. The Group's product inventories 
increased somewhat during the period, consistent with seasonal patterns.


EUR million   2002      2003 Q1-Q3/03 Q1-Q3/04    Q3/03    Q2/04    Q3/04
Sales     12 782.6  12 172.3  9 143.5  9 153.9  2 987.5  3 102.9  3 033.1
EBITDA1)2) 2 145.9   1 710.6  1 334.3  1 175.7    440.2    363.3    418.4
Operating 
profit2)     900.4     525.8    448.4    293.5    136.8     58.5    131.6
Non-recurring
items     -1 078.1    -108.4    -39.9    189.8    -39.9        -     74.1
Operating 
margin2), %    7.0       4.3      4.9      3.2      4.6      1.9      4.3
Operating 
profit      -177.7     471.4    408.5    483.3     96.9     58.5    205.7
Profit before
tax and
minority
interests2)  708.8     319.2    314.4    244.6    104.4     49.0    114.8
Profit before
tax and
minority
interests   -369.3     210.8    274.5    434.4     64.5     49.0    188.9
Net profit
for the
period      -240.7     137.9    182.3    589.7     45.1     51.9    130.9
   
EPS2),Basic,
EUR           0.55      0.24     0.24     0.23     0.08     0.06     0.10
EPS,Basic,EUR-0.27      0.16     0.21     0.71     0.05     0.06     0.16
CEPS2)3), EUR 1.95      1.63     1.28     1.29     0.44     0.43     0.45
ROCE2),%       7.0       4.5      5.0      3.5      4.6      2.2      4.9


1)      EBITDA = Earnings before Interest, Taxes, Depreciation and
Amortisation
2)      Excluding net non-recurring items. Exceptional transactions that
are not related to normal business operations are accounted for as 
non-recurring items. The most common non-recurring items are capital 
gains, additional write-downs, restructuring provisions and penalties. 
Non-recurring items are normally specified individually if they exceed 
one cent per share.
3)      CEPS = (Net profit for the period + depreciation and
amortisation)/average number of shares



Third Quarter Results (compared with previous quarter)
Sales at EUR 3 033.1 million were slightly lower than the previous
quarter's EUR 3 102.9 million, mainly due to seasonal reasons and changes
in product mix.

Operating profit excluding non-recurring items was 
EUR 131.6 (EUR 58.5) million, which is EUR 73.1 million more than in the 
previous quarter and 4.3% of sales. Operating profit increased in paper 
and board segments, decreased in Wood Products and Merchants, and remained 
almost unchanged in Wood Supply Europe.

Operating profit improved mainly due to higher production volumes. In
North America slightly higher prices and the Profit Enhancement Programme
started to have an impact. In Wood Products, lower production and
decreased sales volumes for seasonal reasons accounted for most of the
operating profit decrease. Released cash flow hedging contracts,
especially for the US dollar and British pound, had an impact of 
EUR 2.1 (EUR -0.1) million on operating profit.

There were two non-recurring items in the third quarter with a total
positive effect of USD 90.9 (EUR 74.1) million on operating profit
consisting of a reversal of expenses already taken in respect of various
US retiree healthcare programmes and the increased cost associated with
the future reduction of maintenance personnel in the USA.

Net financial items were EUR -27.0 (EUR -26.2) million. Net interest
expenses amounted to EUR -31.8 (EUR -34.9) million and net foreign
exchange losses were EUR 1.5 (EUR 1.6) million. Other financial items
totalled EUR 6.3 (EUR 10.3) million, mostly due to unrealised changes in
fair values of financial instruments.

The share of associated company results amounted to 
EUR 10.2 (EUR 16.7) million, including EUR 6.4 million from Bergvik Skog.

Profit before taxes and minority interests excluding non-recurring items
amounted to EUR 114.8 (EUR 49.0) million.

Net taxes totalled EUR 56.6 (EUR 5.0 positive) million. The average 
nine-month tax rate excluding one-time adjustments was 29.9% (31.3%).

The minority interest in profits was EUR -1.4 (EUR -2.1) million and the
net profit for the period was EUR 130.9 (EUR 51.9) million. Earnings per
share excluding non-recurring items were EUR 0.10 (EUR 0.06).

The return on capital employed excluding non-recurring items was 
4.9% (2.2%). Capital employed was EUR 10 845.0 million at the end of the
period, a net increase of EUR 14.3 million. The currency effect decreased
the capital employed by EUR 33.9 million.


Capital Structure
EUR million                31.12.2003  30.9.2003  30.6.2004  30.9.2004
   
Fixed assets                 12 676.1   12 957.9   11 080.8   11 056.6
Working capital                 872.1    1 089.1    1 174.4    1 220.7
Operating Capital            13 548.2   14 047.0   12 255.2   12 277.3
Net tax liabilities          -1 935.1   -2 018.4   -1 424.5   -1 432.3
Capital Employed             11 613.1   12 028.6   10 830.7   10 845.0
Associated companies            319.0      239.9      508.4      558.5
Total                        11 932.1   12 268.5   11 339.1   11 403.5
   
Shareholders’ equity          7 952.9    8 086.9    7 916.2    7 993.9
Minority interests               60.3       77.2       66.5       67.0
Interest-bearing net 
liabilities                   3 918.9    4 104.4    3 356.4    3 342.6
Financing Total              11 932.1   12 268.5   11 339.1   11 403.5


Financing
Cash flow from ongoing operations was EUR 448.1 (EUR 138.5) million and
cash flow after investing activities EUR 127.1 (EUR -186.7) million. Cash
earnings per share excluding non-recurring items were 
EUR 0.45 (EUR 0.43).

At the end of September, interest-bearing net liabilities were 
EUR 3 342.6 million, down EUR 13.8 million on the end of the previous
quarter. Currency effects decreased interest-bearing net liabilities by
EUR 62.2 million. Unutilised credit facilities and cash and cash
equivalent reserves totalled EUR 2.9 billion.

Shareholders' equity amounted to EUR 8.0 billion or EUR 9.72 (EUR 9.56)
per share, compared with a market capitalisation on the 
Helsinki Exchanges on 30 September 2004 of EUR 9.1 billion.

The debt/equity ratio at 30 September 2004 was 0.41 (0.42). The currency
effect on equity was EUR 28.3 million, net of the hedging of equity
translation risks. Share buy-backs decreased equity by EUR 62.6 million
in the third quarter.


Quarterly Change in Interest-bearing Net Liabilities
                                               Structu  Transl  
                                   Cash Flow,      ral   ation Balance
                                      Ongoing  Changes  Differ   Sheet
EUR million                        Operations and OCI*    ence  Impact
Operating profit                        205.7                    205.7
Adjustments                             286.7                    286.7
Change in working capital               -44.3             -2.0   -46.3
Cash Flow from Operations               448.1      0.0    -2.0   446.1
Capital expenditure                    -268.1                   -268.1
Acquisitions                            -51.5                    -51.5
Other changes in fixed assets            -1.4             22.8    21.4
Operating cash flow                     127.1      0.0    20.8   147.9
Net financing items (incl.
associated companies)                   -16.8                    -16.8
Taxes paid                              -60.9     -1.1    13.1   -48.9
Repurchase of own shares                -62.6                    -62.6
Other change in associated companies    -20.7      6.3           -14.4
Other change in shareholders’ equity
and minority interests                    1.2    -20.9    28.3     8.6
Change in Interest-bearing Net
Liabilities                             -32.7    -15.7    62.2    13.8
*OCI = Other Comprehensive Income


Capital Expenditure for the Third Quarter and for January – September
Capital expenditure for the third quarter totalled EUR 268.1 million,
giving a total for the first nine months of EUR 765.3 million. No new
major capital expenditure projects were approved during the quarter.

The main ongoing projects during January – September were rebuilding
paper machine 6 at Maxau Mill (EUR 106.8 million), the new paper machine
12 at Kvarnsveden Mill (EUR 63.8 million), the Skoghall Energy 2005
project (EUR 38.0 million), folding boxboard asset improvements at
Baienfurt Mill (EUR 27.7 million) and rebuilding paper machine 16 at
Wisconsin Rapids Mill (USD 31.6 million).

Capital expenditure in 2004 is expected to be close to depreciation at
approximately EUR 1.1 billion.

Events in associated companies
During the third quarter Stora Enso invested a further EUR 35.9 million
in equity in Veracel, which is progressing with the construction of its
new pulp mill in Brazil, bringing the total amount invested in equity in
Veracel in the first nine months of 2004 to EUR 72.5 million.

January – September Results (compared with the same period in 2003) 
Sales were EUR 9 153.9 million, similar to the same period last year.

Operating profit excluding non-recurring items decreased by 
EUR 154.9 million, or 35%, to EUR 293.5 million due to lower sales 
prices partly offset by higher deliveries. The impact of the 
restructuring of the ownership of the Swedish forestland was about 
EUR 50 million. Profits were lower than in the first nine months last 
year in all segments except Merchants and Wood Products.

Matured currency hedging contracts, especially for the US dollar and
British pound, had a positive impact of EUR 11.4 (EUR 84.2) million on
operating profit.

Profit before taxes and minority interests excluding non-recurring items
decreased by EUR 69.8 million to EUR 244.6 million.

Excluding non-recurring items, earnings per share were 
EUR 0.23 (EUR 0.24) and the return on capital employed was 3.5% (5.0%). 
Non-recurring items totalled EUR 189.8 million in the first nine months 
this year and EUR -39.9 million in the same period last year.


Inspections by Competition Authorities
In May 2004 Stora Enso was the subject of inspections carried out by the
European Commission and the Finnish Competition Authority at locations in
Europe and received subpoenas issued by the US Department of Justice as
part of preliminary anti-trust investigations into the paper industry in
Europe and the USA. The investigations by the authorities in both Europe
and the USA are at a fact-finding stage only and no formal allegations
have been made against the Group or any of its employees. Coincident with
these investigations, Stora Enso has been named in a number of class
action lawsuits filed in the USA. No provision has been made.


Third Quarter Events
In August Stora Enso entered into an agreement with the Cham Paper Group
for the transfer of technical know-how and marketing information from
Cham's Hunsfos Mill in Norway. This will permit production of Cham's
wallpaper base products at Stora Enso's Wolfsheck Mill in Germany. The
deal was approved by the competition authorities in September 2004.

In September Stora Enso finalised the acquisition of the Dutch paper
merchant Scaldia Papier B.V. from International Paper. Stora Enso
acquired Scaldia Papier to strengthen its presence in the rapidly
changing European paper merchant market and to achieve synergies with its
Papyrus merchant operations. The debt free transaction value was 
EUR 30 million.


Share Capital and Ownership
The trading systems of the Helsinki and Stockholm stock exchanges were
merged on 27 September 2004. At the request of the 
Stockholm Stock Exchange, Stora Enso delisted the Stora Enso EUR A 
and Stora Enso EUR R shares from the Stockholm Stock Exchange. As a 
result, Stora Enso's shares are quoted in Helsinki in euros (EUR), 
in Stockholm in Swedish krona (SEK) and its ADRs in New York in 
US dollars (USD).

A total of 1 010 382 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
during the third quarter was recorded in the Finnish Trade Register on 
15 September 2004. Following this conversion, the Company had
179 060 194 A shares and 658 183 205 R shares in issue.

On 30 September 2004 Stora Enso held 12 300 A shares and 
14 765 398 R shares with a nominal value of EUR 25.1 million; these 
represented 1.8% of the share capital and 0.6% of the voting rights. 
On 30 September 2004 the registered share capital of the Company was 
EUR 1 423.3 million.

Shareholders' equity amounted to EUR 8.0 billion, compared with a market
capitalisation on the Helsinki Stock Exchange on 30 September 2004 
of EUR 9.1 billion.


Events after the period
On 7 October Stora Enso announced the divestment of its majority
shareholding in PT Finnantara Intiga, which owns the Finnantara
plantation in West Kalimantan, Indonesia, to Global Forest Ltd., which
is part of the Sinar Mas Group. The transaction resulted in a minor gain
over the USD 26 (EUR 21) million book value of the plantation.

On 20 October Stora Enso approved implementation of the second phase of
the North European Transport Supply System (NETSS), which will start in
the third quarter of 2006 and is expected to reduce costs from 2007
onwards by at least 15% from the current level of about EUR 80 million
per year.

On 27 October Stora Enso announced that the press section of newsprint
machine 4 at Langerbrugge Mill in Belgium will be modified. Metso, the
supplier responsible for the machine, will undertake the modification,
which will take about five weeks and is scheduled for early 2005. About
40 000 tonnes of production will be lost during the shutdown.


Outlook
In Europe economic recovery is increasing demand for paper and
paperboard. Demand for publication paper continues to grow and price
rises are expected at the beginning of next year. Demand for fine paper
is also expected to be strong during the rest of the year. Some price
increases are being implemented in the last quarter of this year in
coated and uncoated fine paper. Demand for packaging boards is firm and
moderate price increases are underway. In wood products the redwood
market remains oversupplied, whereas the whitewood market is balanced and
prices are relatively stable.

In North America demand for magazine paper remains strong and further
price rises will be realised for spot customers in the fourth quarter and
for contract customers in the beginning of next year. Demand for coated
fine paper is strong and further price increases are expected in the
fourth quarter.

Economic growth in Asia continues. Publication and fine paper prices are
strengthening.

Further weakening of the US dollar and increasing oil prices may have a
negative effect on the outlook.

The annual holiday shutdowns, mainly in Finland, will once again have a
negative impact on the Group's fourth quarter results.




This report is unaudited.


Helsinki, 27 October 2004
Stora Enso Oyj
Board of Directors




Segments (compared with the previous quarter)


PAPER

Publication Paper


                                                                            Change
EUR                                                                          Q3/Q2
million 2003    Q1/03    Q2/03    Q3/03    Q4/03    Q1/04    Q2/04    Q3/04      %
Sales4 295.7  1 058.3  1 042.8  1 086.3  1 108.3  1 019.2  1 069.6  1 090.6    2.0
Operating
profit 111.1     35.6     -6.0     39.2     42.3      8.7     -3.8     48.2    N/A
 % of
sales    2.6      3.4     -0.6      3.6      3.8      0.9     -0.4      4.4
ROOC, %* 2.8      3.6     -0.6      3.9      4.2      0.9     -0.4      4.6
Deliveries,
1 000 
t      6 954    1 654    1 678    1 763    1 859    1 732    1 819    1 846    1.5
Production,
1 000 
t      7 011    1 739    1 663    1 812    1 797    1 830    1 782    1 886    5.8
* ROOC = 100% x Operating profit/Operating capital

Publication paper sales were EUR 1 090.6 million, 2.0% up on the previous
quarter due to increased deliveries and higher prices in North America.
Operating profit was EUR 48.2 million, EUR 52.0 million up on the
previous quarter mainly due to high production volumes and lower
costs. Market-related production curtailments totalled 
21 000 (74 000) tonnes in Europe and none (none) in North America.

In Europe demand was substantially better than a year ago in all
publication paper grades. Overseas shipments remained strong. Prices
remained stable throughout the period and some price increases were
implemented in markets outside Europe. Producer inventories increased for
seasonal reasons to levels similar to a year ago, but customer
inventories have not changed significantly.

In North America magazine paper demand was strong and prices rose.
Producer inventories are normal. Newsprint demand decreased slightly but
prices have increased.

In Europe order books are healthy. There is evidence of a recovery in
advertising-driven paper in addition to the usual autumn increase in
demand due to the catalogue season. In North America demand for
publication paper is expected to remain good during the rest of the year
and the beginning of 2005.




Fine Paper
                                                                        
                                                                   Change
EUR million  2003  Q1/03  Q2/03  Q3/03  Q4/03  Q1/04  Q2/04  Q3/04 Q3/Q2%
Sales     3 197.7  852.3  793.9  788.5  763.0  788.9  786.3  791.8    0.7
Operating
profit      153.5   80.7   40.3   23.1    9.4   18.1    4.6   27.9    N/M
 % of sales   4.8    9.5    5.1    2.9    1.2    2.3    0.6    3.5
ROOC, %*      4.4    8.8    4.5    2.7    1.1    2.2    0.5    3.2
Deliveries,
1 000 t     3 591    885    895    894    917    959    964    974    1.0
Production, 
1 000 t     3 624    894    889    922    919    984    999  1 041    4.2
* ROOC = 100% x Operating profit/Operating capital

Fine paper sales were EUR 791.8 million, up 0.7% on the previous quarter.
Operating profit was EUR 27.9 million, up EUR 23.3 million on the
previous quarter mainly due to increased production and higher prices in
North America. Market-related production curtailments totalled 
3 000 (8 000) tonnes in Europe and none (none) in North America.

European demand for uncoated fine paper weakened slightly during the
summer holiday season but has started to pick up again and is expected to
follow the normal seasonal improvement during the autumn. Price increases
in overseas markets have stimulated exports of uncoated fine paper from
Europe, stabilising the supply and demand balance in Europe. Mill stocks
have increased slightly, but merchant stocks are normal. Industry order
books decreased during the summer months but remain healthy, averaging
three weeks.

Capacity utilisation rates in the sector are expected to stay high
through the rest of the year. Price increases will be implemented in some
uncoated fine paper grades by November.

In Europe demand for coated fine paper remained good during the third
quarter and prices were stable. Mill stocks are above the long-term
average but merchant stocks are low. Industry order books average about
two weeks. Demand remains strong and merchant indent prices will
gradually rise from October onwards.

In North America demand for coated fine paper remains strong and prices
have increased. Producer and merchant inventories are in the normal
seasonal range.


Merchants
Sales were EUR 145.7 million, down 1.9% on the previous quarter mainly
due to the normal seasonal slow down in July and August, but higher than
the corresponding EUR 139.5 million last year. Operating profit was 
EUR 1.6 million, down EUR 0.8 million on the previous quarter for the same
seasonal reasons but an improvement on the EUR 1.5 million loss in the
corresponding period last year.

Demand has started to recover. Prices stabilised during the quarter and
price increases will be implemented in the fourth quarter.



PACKAGING BOARDS
                                                                        
                                                                   Change
EUR million  2003  Q1/03  Q2/03  Q3/03  Q4/03  Q1/04  Q2/04  Q3/04 Q3/Q2%
Sales     2 761.6  699.0  711.4  691.1  660.1  692.0  704.4  674.6   -4.2
Operating 
profit      292.4   89.4   65.5   87.4   50.1   82.1   67.7   84.8   25.3
 % of sales  10.6   12.8    9.2   12.6    7.6   11.9    9.6   12.6
ROOC, %*     11.6   14.1   10.3   13.7    7.9   13.1   10.7   13.4
Deliveries, 
1 000 t     3 006    756    781    755    714    776    790    766   -3.0
Production, 
1 000 t     3 050    788    763    767    732    771    775    798    3.0
* ROOC = 100% x Operating profit/Operating capital


Packaging board sales were EUR 674.6 million, down 4.2% on the previous
quarter mainly because sales volumes were lower for seasonal reasons.
Operating profit was EUR 84.8 million, up 25.3% on the previous quarter
due to lower personnel and maintenance costs and higher production.
Market-related production curtailments totalled 37 000 tonnes, mainly in
consumer boards.

Demand was good but sales to the Americas and Asia were influenced by the
low US dollar. There were some price increases in the food, cigarette and
carton board segments.

Demand is generally anticipated to remain firm in Europe. Moderate price
increases are expected in most businesses, reflecting good demand and
higher prices in the USA.

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



FOREST PRODUCTS


Wood Products
                                                                        
                                                                   Change
EUR million  2003  Q1/03  Q2/03  Q3/03  Q4/03  Q1/04  Q2/04  Q3/04 Q3/Q2%
Sales     1 400.0  316.5  385.6  335.5  362.4  373.1  419.2  388.5   -7.3
Operating 
profit       26.5    7.0   14.9   -4.7    9.3   11.4   21.3   10.9  -48.8
 % of sales   1.9    2.2    3.9   -1.4    2.6    3.1    5.1    2.8
ROOC, %*      5.1    6.1   11.0   -3.0    5.7    7.0   12.5    6.3
Deliveries, 
1 000 m3    5 822  1 283  1 644  1 337  1 558  1 597  1 777  1 595  -10.2
Production, 
1 000 m3    6 168  1 406  1 648  1 440  1 674  1 708  1 853  1 619  -12.6
* ROOC = 100% x Operating profit/Operating capital


Wood Products
Wood product sales were EUR 388.5 million, down 7.3% on the previous
quarter mainly due to seasonally lower production and invoicing volumes
in the holiday period. Operating profit was EUR 10.9 million, down 48.8%
on the previous quarter for the same reasons.

The European market for construction wood strengthened, enabling limited
price increases. Good demand in the USA will support a sound market
balance in the European whitewood market.

The US market absorbed high volumes of European whitewood during the
third quarter. Although prices are now less attractive, volumes are
expected to remain high.

In Japan the market was stable, but the weak yen has put pressure on
prices. Demand is expected to remain stable.

The market for redwood for joinery remains somewhat oversupplied.


Wood Supply Europe
Sales were EUR 568.3 million, down 8.5% on the previous quarter.
Operating profit was EUR 3.1 million, down 6.1% on the previous quarter.

Deliveries to the Group's mills in Finland, Sweden, the Baltic States,
Russia and Continental Europe totalled 10.0 million cubic metres, down 6%
on the previous quarter for seasonal reasons. Deliveries are being
hampered by the wet weather conditions in the area east of the Baltic
Sea.

Wood demand remained strong around the Baltic Sea. Prices were generally
stable in Finland and Sweden but still increasing significantly in the
Baltic States. In Continental Europe the supply of pulpwood was strong
and wood prices were stable.




Financials


Key Ratios Q1/03   Q2/03   Q3/03   Q4/03     2003   Q1/04   Q2/04   Q3/04
Earnings
per share
(basic),EUR 0.10    0.06    0.05   -0.05     0.16    0.49    0.06    0.16
Earnings
per share
excl.non-
recurring
items,EUR   0.10    0.06    0.08    0.00     0.24    0.06    0.06    0.10
Cash earnings
per share
(CEPS),EUR  0.43    0.41    0.41    0.32     1.57    0.55    0.43    0.51
CEPS excl.
non-recurring
items,EUR   0.43    0.41    0.44    0.35     1.63    0.41    0.43    0.45
Return on 
capital 
employed
(ROCE),%     7.0     3.5     3.2     2.1      4.0     7.9     2.2     7.6
ROCE excl.
non-recurring
items,%      7.0     3.5     4.6     2.6      4.5     3.7     2.2     4.9
Return on 
equity 
(ROE), %     4.1     2.8     2.1    -2.1      1.7    20.6     2.7     6.6
Debt/equity
ratio       0.49    0.51    0.51    0.49     0.49    0.39    0.42    0.41
Equity per
share,EUR   9.39    9.48    9.60    9.49     9.49    9.47    9.56    9.72
Equity
ratio, %    43.2    43.8    44.2    44.7     44.7    47.8    48.2    48.6
Operating 
profit, 
% of sales   6.7     3.4     3.2     2.1      3.9     7.3     1.9     6.8
Operating 
profit excl.
non-recurring
items, 
% of sales   6.7     3.4     4.6     2.6      4.3     3.4     1.9     4.3
Capital
expenditure, 
EUR 
million    235.8   324.1   303.1   385.2  1 248.2   216.1   281.1   268.1
Capital
expenditure, 
% of sales   7.6    10.6    10.1    12.7     10.3     7.2     9.0     8.8
Capital
employed, 
EUR 
million   11 871  11 925  12 029  11 613   11 613  10 579  10 831  10 845
Interest
-bearing
net
liabilities, 
EUR 
million    3 968   4 071   4 104   3 919    3 919   3 105   3 356   3 343
Average
number of 
employees 43 386  44 506  44 737  44 264   44 264  42 446  43 795  44 045
Average
number of 
shares 
(million)
- periodic 866.2   852.9   844.5   841.3    851.1   836.4   831.8   826.3
- cumula
tive       866.2   859.5   854.4   851.1    851.1   836.4   834.7   832.2
- cumulative,
diluted    866.4   860.5   855.6   852.4    852.4   837.1   835.6   833.1



Key Exchange Rates for the Euro
One Euro is              Closing Rate               Average Rate
                   31 Dec 2003  30 Sep 2004   31 Dec 2003   30 Sep 2004
SEK                  9.0800        9.0588       9.1245        9.1630
USD                  1.2630        1.2409       1.1320        1.2263
GBP                  0.7048        0.6868       0.6921        0.6730
CAD                  1.6234        1.5740       1.5822        1.6281



Condensed Consolidated Income Statement
EUR million                               2003  Q1-Q3/2003  Q1-Q3/2004
   
Sales                                 12 172.3     9 143.5     9 153.9
Other operating income                    41.2       109.5       194.3
Materials & services                  -6 129.3    -4 648.1    -4 778.6
Freight & sales commissions           -1 286.8      -970.4    -1 010.8
Personnel expenses                    -2 297.6    -1 707.2    -1 580.0
Other operating expenses                -828.0      -631.8      -613.3
Depreciation, amortisation and
impairment charges                    -1 200.4      -887.0      -882.2
Operating Profit                         471.4       408.5       483.3
Share of results of associated companies -23.0       -18.0        24.6
Net financial items                     -237.7      -116.0       -73.5
Profit before Tax and Minority Interests 210.7       274.5       434.4
Income tax expense                       -67.0       -88.4       163.0
Profit after Tax                         143.7       186.1       597.4
Minority interests                        -5.8        -3.8        -7.7
Net Profit for the Period                137.9       182.3       589.7
   
Key Ratios
Basic earnings per share, EUR             0.16        0.21        0.71
Diluted earnings per share, EUR           0.16        0.21        0.71





Condensed Consolidated Cash Flow Statement
EUR million                               2003  Q1-Q3/2003  Q1-Q3/2004
   
Cash Flow from Operating Activities
 Operating profit                        471.4       408.5       483.3
 Adjustments                           1 178.3       875.2       766.4
 Change in net working capital           157.9       -57.0      -474.1
 Change in short-term interest-
 bearing receivables                     313.1       639.6       579.9
Cash Flow Generated by Operations      2 120.7     1 866.3     1 355.5
 Net financial items                    -198.1      -141.7       -91.4
 Income taxes paid                      -233.8      -222.7      -149.5
Net Cash Provided by Operating 
Activities                             1 688.8     1 501.9     1 114.6
   
Cash Flow from Investing Activities
 Acquisitions                           -241.3      -142.8      -282.3
 Proceeds from sale of fixed
 assets and shares                        60.2        12.9       208.1
 Capital expenditure                  -1 226.7      -863.0      -765.3
 Proceeds from the long-term
 receivables, net                        336.2       -97.9      -174.2
Net Cash Used in Investing Activities -1 071.6    -1 090.8    -1 013.7
   
Cash Flow from Financing Activities
 Change in long-term liabilities        -962.5      -361.7      -201.3
 Change in short-term borrowings       1 097.1       632.3       707.7
 Dividends paid                         -387.7      -387.7      -375.7
 Proceeds from issuance of share capital   2.3           -         4.4
 Purchase of own shares                 -319.2      -267.9      -175.3
Net Cash Used in Financing Activities   -570.0      -385.0       -40.2
   
Net Increase in Cash and Cash Equivalents 47.2        26.1        60.7
 Cash and bank in acquired companies       3.0         4.2           -
 Cash and bank in sold companies             -           -       -68.2
 Translation differences on cash holdings-17.2        -4.2         1.9
 Cash and bank at the beginning of 
 period                                  168.5       168.5       201.5
Cash and Cash Equivalents at Period End  201.5       194.6       195.9



Property, Plant and Equipment, Intangible Assets and Goodwill
EUR million                             2003   Q1-Q3/2003   Q1-Q3/2004
Carrying value at 1 January         12 796.7  *  12 796.7  *  12 535.3
Acquisition of subsidiary companies    206.4        227.3         39.8
Additions                            1 248.2        863.0        765.3
Disposals                              -54.0         -5.8     -1 588.7
Depreciation, amortisation and
impairment                          -1 200.4       -887.0       -882.2
Translation difference and other      -461.6       -186.2         42.5
Balance Sheet Total                 12 535.3     12 808.0     10 912.0
   
Acquisitions of Subsidiary Companies
Property, plant and equipment          132.6        207.1         33.0
Borrowings                             -94.1        -94.9         -7.6
Other assets, less liabilities          12.9         -2.1          8.6
Fair value of net assets                51.4        110.1         34.0
Goodwill                                73.8         20.2          6.8
Total Purchase Consideration           125.2        130.3         40.8
* Includes the initial IAS 41 valuation of forest of EUR 855.8 million


Borrowings
EUR million                             2003   Q1-Q3/2003   Q1-Q3/2004
   
Non-current borrowings               3 404.6      4 114.5      3 186.5
Current borrowings                   1 769.6      1 172.6      1 017.6
                                     5 174.2      5 287.1      4 204.1
   
Carrying value at 1 January          5 175.6      5 175.6      5 174.2
Debt acquired with new subsidiaries     94.1         94.9          7.6
Debt disposed with sold subsidiaries       -            -     -1 487.2
Proceeds from / -payments of
borrowings (net)                       421.5        240.9        495.8
Translation difference and other      -517.0       -224.3         13.7
Total Borrowings                       5 174.2     5 287.1     4 204.1




Condensed Consolidated Balance Sheet

Assets
EUR million                  31 Dec 2003    30 Sep 2003    30 Sep 2004
   
Fixed and Other Long-term Assets
Fixed assets             O      12 535.3       12 808.0       10 912.0
Investment in associated 
companies                          319.0          239.9          558.5
Listed securities        I         227.7          217.3          214.6
Unlisted shares          O         140.8          149.9          144.6
Non-current loan
receivables              I          44.3          484.9          225.7
Deferred tax assets      T          12.1           51.9           17.4
Other non-current assets O         170.3          190.8          233.5
                                13 449.5       14 142.7       12 306.3
   
Current Assets
Inventories              O       1 623.5        1 679.5        1 850.6
Tax receivables          T         182.5          202.1          159.3
Operative receivables    O       1 703.3        1 956.7        1 858.7
Interest-bearing
receivables              I         781.8          285.9          225.4
Cash and cash
equivalents              I         201.5          194.6          195.9
                                 4 492.6        4 318.8        4 289.9
   
Total assets                    17 942.1       18 461.5       16 596.2




Shareholders' Equity and Liabilities
EUR million                  31 Dec 2003    30 Sep 2003    30 Sep 2004
   
Shareholders’ Equity             7 952.9        8 086.9        7 993.9
Minority Interests                  60.3           77.2           67.0
   
Long-term Liabilities
Pension provisions       O         911.9          915.6          824.2
Other provisions         O          97.1          192.8           73.8
Deferred tax liabilities T       1 777.3        1 847.9        1 246.0
Long-term debt           I       3 404.6        4 114.5        3 186.5
Long-term operative
liabilities              O          77.7           17.4          153.8
                                 6 268.6        7 088.2        5 484.3
Current Liabilities
Current portion of
long-term debt           I         359.5          204.5          152.1
Interest-bearing
liabilities              I       1 410.1          968.1          865.6
Operative liabilities    O       1 538.3        1 612.1        1 670.3
Tax liabilities          T         352.4          424.5          363.0
                                 3 660.3        3 209.2        3 051.0
   
Total Liabilities                9 928.9       10 297.4        8 535.3
   
Total Shareholders’ Equity 
and Liabilities                 17 942.1       18 461.5       16 596.2


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
                              Treasu                  
              Share    Share      ry                 Retained
EUR million Capital  Premium  Shares     OCI     CTA Earnings    Total
   
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
 Subsidiary
 companies        -        -       -       -       -    615.4    615.4
 Associated
 companies        -        -       -       -       -     44.0     44.0
Balance at 
1 January
2003
(restated)  1 529.6  1 554.0  -314.9   233.4  -144.4  5 958.6  8 816.3
Repurchase of 
Stora Enso Oyj
shares            -        -  -319.1       -       -        -   -319.1
Cancellation of
Stora Enso Oyj
shares        -60.5   -315.5   376.0       -       -        -      0.0
Dividend
(EUR 0.45
per share)        -        -       -       -       -   -387.7   -387.7
Options
exercised       0.2     -1.1       -       -       -        -     -0.9
Net profit for 
the period        -        -       -       -       -    146.6    146.6
OCI entries       -        -       -  -118.8       -        -   -118.8
Translation 
adjustment        -        -       -       -   -52.7        -    -52.7
Balance at 
31 December
2003        1 469.3  1 237.4  -258.0   114.6  -197.1  5 717.5  8 083.7
Restatement of
opening balance
 Finnish Statutory
 Pension Scheme   -        -       -       -       -   -130.9   -130.9
Balance at 
1 January
2004
(restated)  1 469.3  1 237.4  -258.0   114.6  -197.1  5 586.6  7 952.8
Repurchase of 
Stora Enso Oyj
shares            -        -  -175.3       -       -        -   -175.3
Cancellation of
Stora Enso Oyj
shares        -47.3   -228.5   275.8       -       -        -      0.0
Dividend
(EUR 0.45
per share)        -        -       -       -       -   -375.7   -375.7
Options
exercised       1.3      1.8       -       -       -        -      3.1
Net profit for 
the period        -        -       -       -    -4.3    589.7    585.4
OCI entries       -        -       -   -26.4       -        -    -26.4
Translation 
adjustment        -        -       -       -    30.0        -     30.0
Balance at 
30 September
2004        1 423.3  1 010.7  -157.5    88.2  -171.4  5 800.6  7 993.9
CTA = Cumulative Translation Adjustment
OCI = Other Comprehensive Income


Commitments and Contingencies
EUR million                    31 Dec 2003   30 Sep 2003   30 Sep 2004
   
On own Behalf
 Pledges given                         3.8           0.9           0.8
 Mortgages                           103.5          98.7          97.9
On Behalf of Associated Companies
 Mortgages                             0.8           1.0           0.8
 Guarantees                           48.4          51.1         172.2
On Behalf of Others
 Pledges given                         2.2           0.4           0.0
 Mortgages                            10.9           0.4           0.0
 Guarantees                           13.1          15.6          12.1
Other Commitments, Own
 Leasing commitments, in
 next 12 months                       34.3          37.7          30.4
 Leasing commitments, after
 next 12 months                      171.2         200.7         141.4
 Pension liabilities                   3.0           3.1           2.8
 Other commitments                    95.9          66.3          70.6
Total                                487.1         475.9         529.0
   
 Pledges given                         6.0           1.3           0.8
 Mortgages                           115.2         100.1          98.7
 Guarantees                           61.5          66.7         184.3
 Leasing commitments                 205.5         238.4         171.8
 Pension liabilities                   3.0           3.1           2.8
 Other commitments                    95.9          66.3          70.6
Total                                487.1         475.9         529.0




Net Fair Values of Derivative Financial Instruments
EUR million             31 Dec 2003 30 Sep 2003    30 Sep 2004 
                                                 Posit  Negati
                                                   ive      ve     Net
                           Net Fair    Net Fair   Fair    Fair    Fair
                             Values      Values Values  Values  Values
Interest rate swaps           106.8       151.5  146.3    -1.5   144.8
Interest rate options           0.5         1.2    0.8    -0.3     0.5
Cross-currency swaps          -11.0        -9.3    2.5   -13.9   -11.4
Forward contracts             172.8        63.9   49.6   -16.1    33.5
FX Options                      0.7        -8.0    0.0    -0.2    -0.2
Commodity contracts            71.5        93.4   73.1    -1.7    71.4
Equity swaps                  -36.0       -37.5   16.4   -39.3   -22.9
Total                         305.3       255.2  288.7   -73.0   215.7


Nominal Values of Derivative Financial Instruments
EUR million                  31 Dec 2003    30 Sep 2003    30 Sep 2004
Interest Rate Derivatives
Interest rate swaps
 Maturity under 1 year             113.7           50.6          131.5
 Maturity 2–5 years              1 080.4          856.1          702.7
 Maturity 6–10 years             1 439.2          869.3        1 226.3
 Maturity over 10 years                -              -              -
                                 2 633.3        1 776.0        2 060.5
Interest rate futures                  -              -              -
Interest rate options               23.8          154.5          200.1
Total                            2 657.1        1 930.5        2 260.6
   
Foreign Exchange Derivatives
-  Cross-currency swap agreements  129.5          134.2          107.8
-  Forward contracts             3 112.5        4 371.9        2 819.0
-  FX Options                      208.1          818.7           64.7
Total                            3 450.1        5 324.8        2 991.5
   
Commodity derivatives
Commodity contracts                477.0          532.1          460.8
Total                              477.0          532.1          460.8
   
Equity swaps
Equity swaps                       308.4          308.4          359.5
Total                              308.4          308.4          359.5



Sales by Product Area
EUR
million    2002    Q1/03   Q2/03   Q3/03    Q4/03     2003   Q1/04   Q2/04   Q3/04
   
Publication  
Paper   4 715.6  1 058.3 1 042.8 1 086.3  1 108.3  4 295.7 1 019.2 1 069.6 1 090.6
Fine
Paper   3 427.4    852.3   793.9   788.5    763.0  3 197.7   788.9   786.3   791.8
Merchants 720.6    176.1   155.4   139.5    156.6    627.6   160.3   148.5   145.7
Other    -289.5    -72.0   -69.0   -70.4    -69.9   -281.3   -70.4   -68.6   -72.3
Paper   8 574.1  2 014.7 1 923.1 1 943.9  1 958.0  7 839.7 1 898.0 1 935.8 1 955.8
Packaging
Boards  2 720.2    699.0   711.4   691.1    660.1  2 761.6   692.0   704.4   674.6
Wood
Products1 235.2    316.5   385.6   335.5    362.4  1 400.0   373.1   419.2   388.5
Wood Supply
Europe  1 958.7    534.2   526.7   475.0    538.4  2 074.3   634.9   621.4   568.3
Other    -531.3   -143.5  -149.9  -131.7   -165.9   -591.0  -229.8  -225.6  -207.1
Forest
Products2 662.6    707.2   762.4   678.8    734.9  2 883.3   778.2   815.0   749.7
Other  -1 174.3   -321.8  -339.9  -326.4   -324.2 -1 312.3  -350.3  -352.3  -347.0
Total  12 782.6  3 099.1 3 057.0 2 987.4  3 028.8 12 172.3 3 017.9 3 102.9 3 033.1




Restated Operating Profit by Product Area excluding Non-recurring Items
and Goodwill
EUR million   2002  Q1/03  Q2/03  Q3/03   Q4/03    2003  Q1/04  Q2/04  Q3/04
   
Publication
Paper        313.6   35.6   -6.0   39.2    42.3   111.1    8.7   -3.8   48.2
Fine Paper   298.3   80.7   40.3   23.1     9.4   153.5   18.1    4.6   27.9
Merchants      5.4    1.5   -1.2   -1.5    -5.5    -6.7    3.3    2.4    1.6
Paper        617.3  117.8   33.1   60.8    46.2   257.9   30.1    3.2   77.7
Packaging 
Boards       345.3   89.4   65.5   87.4    50.1   292.4   82.1   67.7   84.8
Wood Products 44.5    7.0   14.9   -4.7     9.3    26.5   11.4   21.3   10.9
Wood Supply
Europe        94.6   34.5   33.8   23.0    25.2   116.5   31.3    3.3    3.1
Forest
Products     139.1   41.5   48.7   18.3    34.5   143.0   42.7   24.6   14.0
Other Areas  -52.5   -8.6  -15.7   -6.2   -21.0   -51.5  -28.8  -15.1  -23.2
Goodwill
amortisation-148.8  -32.1  -28.0  -23.5   -32.4  -116.0  -22.7  -21.9  -21.7
Operating Profit
excl. Non-recurring
Items        900.4  208.0  103.6  136.8    77.4   525.8  103.4   58.5  131.6
Non-recurring
items     -1 078.1      -      -  -39.9   -14.5   -54.4  115.7      -   74.1
Operating 
Profit 
(IAS)       -177.7  208.0  103.6   96.9    62.9   471.4  219.1   58.5  205.7
Net financial
items       -206.2  -81.3  -11.3  -23.4  -121.7  -237.7  -20.3  -26.2  -27.0
Associated 
companies     14.6   -0.5   -8.5   -9.0    -5.0   -23.0   -2.3   16.7   10.2
Profit Before
Tax and Minority
Interests   -369.3  126.2   83.8   64.5   -63.8   210.7  196.5   49.0  188.9
Income tax
expense      128.5  -39.9  -27.4  -21.1    21.4   -67.0  214.6    5.0  -56.6
Profit after
Tax         -240.8   86.3   56.4   43.4   -42.4   143.7  411.1   54.0  132.3
Minority
interests      0.1   -3.2   -2.3    1.7    -2.0    -5.8   -4.2   -2.1   -1.4
Net Profit  -240.7   83.1   54.1   45.1   -44.4   137.9  406.9   51.9  130.9



Goodwill Amortisation by Product Area
EUR million 2002  Q1/03  Q2/03  Q3/03  Q4/03    2003  Q1/04  Q2/04  Q3/04
   
Publication
Paper      -56.7   -7.9   -8.2   -8.1  -10.2   -34.4   -5.7   -5.6   -5.7
Fine Paper -53.7  -10.9  -10.6  -10.6  -11.0   -43.1  -10.2   -9.5   -9.3
Merchants   -5.2   -0.6   -0.5   -0.6   -0.5    -2.2   -0.4   -0.5   -0.4
Paper     -115.6  -19.4  -19.3  -19.3  -21.7   -79.7  -16.3  -15.6  -15.4
Packaging 
Boards     -13.0   -6.5   -1.5   -1.9   -2.0   -11.9   -1.2   -1.0   -1.1
Wood
Products   -14.4   -4.0   -6.1   -1.2   -8.7   -20.0   -5.2   -5.3   -5.2
Wood Supply
Europe       0.0    0.0    0.0    0.0    0.0     0.0    0.0    0.0    0.0
Forest
Products   -14.4   -4.0   -6.1   -1.2   -8.7   -20.0   -5.2   -5.3   -5.2
Other       -5.8   -2.2   -1.1   -1.1    0.0    -4.4    0.0    0.0    0.0
Operating 
Profit    -148.8  -32.1  -28.0  -23.5  -32.4  -116.0  -22.7  -21.9  -21.7



Restated Operating Profit by Product Area
EUR million 2002  Q1/03  Q2/03  Q3/03   Q4/03    2003  Q1/04  Q2/04  Q3/04
   
Publication
Paper     -762.7   27.7  -14.2    1.6    32.1    47.2    3.0   -9.4   73.3
Fine Paper  67.9   69.8   29.7    2.2    -1.6   100.1    7.9   -4.9   60.1
Merchants  -24.7    0.9   -1.7   -2.1    -6.0    -8.9    2.9    1.9    1.2
Paper     -719.5   98.4   13.8    1.7    24.5   138.4   13.8  -12.4  134.6
Packaging 
Boards     332.3   82.9   64.0   85.5    48.1   280.5   80.9   66.7   83.7
Wood 
Products    30.1    3.0    8.8   -5.9     0.6     6.5    6.2   16.0    5.7
Wood Supply
Europe     120.5   34.5   33.8   23.0    25.2   116.5  147.0    3.3    3.1
Forest
Products   150.6   37.5   42.6   17.1    25.8   123.0  153.2   19.3    8.8
Other       58.9  -10.8  -16.8   -7.4   -35.5   -70.5  -28.8  -15.1  -21.4
Operating 
Profit    -177.7  208.0  103.6   96.9    62.9   471.4  219.1   58.5  205.7
Net financial
items     -206.2  -81.3  -11.3  -23.4  -121.7  -237.7  -20.3  -26.2  -27.0
Associated 
companies   14.6   -0.5   -8.5   -9.0    -5.0   -23.0   -2.3   16.7   10.2
Profit Before
Tax and
Minority
Interests -369.3  126.2   83.8   64.5   -63.8   210.7  196.5   49.0  188.9
Income tax
expense    128.5  -39.9  -27.4  -21.1    21.4   -67.0  214.6    5.0  -56.6
Profit after
Tax       -240.8   86.3   56.4   43.4   -42.4   143.7  411.1   54.0  132.3
Minority
interests    0.1   -3.2   -2.3    1.7    -2.0    -5.8   -4.2   -2.1   -1.4
Net Profit-240.7   83.1   54.1   45.1   -44.4   137.9  406.9   51.9  130.9




Stora Enso Shares


Closing Price     Helsinki, EUR        Stockholm, SEK      New York, USD
              Series A   Series R  Series A   Series R        ADRs
July           11.51      11.54     107.00     106.50         13.89
August         11.00      10.99     102.00     100.00         13.47
September      10.97      10.88     100.50      98.75         13.53


Trading Volume      Helsinki             Stockholm          New York 
             Series A   Series R   Series A   Series R        ADRs
July          30 904    43 084 464   96 090   9 102 261     1 493 400
August        78 512    50 408 228  176 890  10 625 231     1 343 000
September     87 956    70 556 617  185 109  20 152 355     1 121 400
Total        197 372   164 049 309  458 089  39 879 847     3 957 800


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


Publication dates for financial information
Results for 2004                                3 February 2005

Interim Review for January – March 2005         27 April 2005 
Interim Review for January – June 2005          27 July 2005 
Interim Review for January – September 2005     27 October 2005

Annual General Meeting                          22 March 2005



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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