Stora Enso?s Q2 2005 results impacted by labour dispute effects and non-recurring item
STORA ENSO OYJ Stock Exchange Release 6 July 2005 at 16.00
Stora Ensos Q2 2005 results impacted by labour dispute effects and
non-recurring item
A new collective labour agreement for the paper industry in Finland was
signed on 1 July 2005. Prior to signing the new agreement, the labour
dispute resulted in the cessation of Finnish production for about seven
weeks during the second quarter. At the time of the publication of
Stora Ensos financial results for the first quarter of 2005, the
company estimated that disruption to its production in Finland would
reduce the Groups operating profit by about EUR 3 million per day. It
can now be confirmed that therefore the Q2 2005 results are negatively
impacted by approximately EUR 150 million due to the impact of the
labour dispute.
Production has recommenced at all of the Groups production units in
Finland. However, full production of saleable quality will not be
achieved until the second week of July. The Groups third quarter 2005
results will therefore be affected by the machine start-ups in the
first week of the quarter.
The new labour agreement, with its significant changes to working
practices, will help to ensure the long-term competitiveness of the
Finnish forest products industry.
Non-recurring item
The second quarter 2005 results will also be affected by the decision
to impair the fixed asset value of Veitsiluoto Sawmill in Finland by
approximately EUR -12 million.
Further comments on the Groups performance and outlook will be
provided when the second quarter results are published on Wednesday 27
July 2005 at 13.00 Finnish Time.
For further information, please contact:
Esko Mäkeläinen, Chief Financial Officer, tel. +44 20 7016 3115
Kari Vainio, Executive Vice President, Corporate Communications, tel.
+44 7799 348197
Keith B Russell, Senior Vice President, Investor Relations, tel. +44
7775 788659
Ulla Paajanen-Sainio, Vice President, Investor Relations and Financial
Communications, tel. +358 40 763 8767
STORA ENSO OYJ
p.p. Anu Vesmanen Veli-Matti Tahvanainen