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 Ensos 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 25 years 1 080.4 856.1 702.7
Maturity 610 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
