Stora Enso?s non-recurring items and other effects on fourth quarter 2004 results
STORA ENSO OYJ Stock Exchange Release 28 December 2004 at 11.00
Stora Ensos non-recurring items and other effects on fourth quarter 2004 results The Finnish Ministry of Social Affairs and Health has approved certain changes to the principles for calculating disability pension liabilities under the Finnish statutory employment pension scheme (TEL). Changes will be effective 1 January 2006 onwards. According to the new practice, TELs disability pension part is accounted as a defined contribution liability in the IFRS accounts. Due to this change, Stora Enso will release a major part (approximately 90%) of a previously made provision and enter a non-recurring positive item of approximately EUR 170 million, depending on the year-end actuarial calculations, in operating profit in the fourth quarter of 2004. Major accounting firms interpreted the accounting of the former Finnish TELs disability pension system in accordance with IFRS as a defined benefit liability in April 2004. Stora Enso changed its treatment of Finnish TELs disability pensions at that time and restated its figures in the 20-F accounts. These restated historical figures will stay unchanged for 2003 and prior periods. In addition the financial results for the fourth quarter 2004 are negatively impacted by the annual holiday shutdowns and low business activity during the holidays. The Group is also experiencing an erosion of margins caused by the recent weakness of the US dollar and certain increased input costs. Further comments on the Groups performance and outlook will be provided when the fourth quarter and full year 2004 financial results are released on Thursday 3 February 2005 at 13.00 Finnish time (11.00 GMT). For further information, please contact: Esko Mäkeläinen, CFO, tel. +358 2046 21452 Kari Vainio, Executive Vice President, Corporate Communications, tel. +44 7799 348 197 Keith B Russell, Senior Vice President, Investor Relations, tel. +44 7775 788 659 Ulla Paajanen-Sainio, Vice President, Investor Relations and Financial Communications, tel. +358 2046 21242 www.storaenso.com www.storaenso.com/investors STORA ENSO OYJ Ulla Paajanen-Sainio Jyrki Kurkinen