Stora Enso will record an additional non-recurring item in its fourth quarter 2010 operating profit with EUR 21 million negative impact
STORA ENSO OYJ STOCK EXCHANGE RELEASE 25 January 2011 at 09.00 EET
Stora Enso will record on its operating profit, in addition to the EUR 223 million positive non-recurring items (NRI) announced on 20 December 2010, a EUR 21 million negative NRI in its fourth quarter 2010 results related to performance-based rewards that were not paid due to illegal strikes in Finland in 2005–2009. This new NRI is a provision with cash impact. The NRIs in the fourth quarter of 2010 total a positive EUR 202 million.
On 22 December 2010 the Finnish Supreme Court gave a precedent ruling obliging Stora Enso to pay performance-based rewards also to those employees who had taken part in illegal industrial action in May 2006. Stora Enso will follow the ruling and voluntarily pay all unpaid performance-based rewards from 2005–2009,including interest, on the same basis as that covered by the precedent.
Allocation of NRI between segments, EUR million
| Segment | Announced 25 Jan 2011 | Announced 20 Dec 2010 | Q4 2010 NRIs – Group total |
| Newsprint and Book Paper | -1.1 | -- | -1.1 |
| Magazine Paper | -1.1 | -- | -1.1 |
| Fine Paper | -4.4 | 64.8 | 60.4 |
| Consumer Board | -5.6 | 173.2 | 167.6 |
| Industrial Packaging | -2.3 | -2.7 | -5.0 |
| Wood Products | -1.0 | 2.9 | 1.9 |
| Other | -5.2 | -15.3 | -20.5 |
| Total | -20.7 | 222.9 | 202.2 |
The negative tax impact of EUR 38 million from NRIs announced on 20 December 2010 will remain unchanged.
For further information, please contact:
Lauri Peltola, Head of Group Communications and Global Responsibility, tel. +358 2046 21380
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
Stora Enso is a global paper, packaging and wood products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products. The Group is the world leader in forest industry sustainability. We offer our customers solutions based on renewable raw materials. Our products provide a climate-friendly alternative to many non-renewable materials, and have a smaller carbon footprint. Stora Enso is listed in the Dow Jones Sustainability Index and the FTSE4Good Index. Stora Enso employs some 27 000 people worldwide, and our sales in 2009 amounted to EUR 8.9 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.
STORA ENSO OYJ