Stora Enso's non-recurring items at operating profit level in fourth quarter 2010 will total approximately positive EUR 223 million
STORA ENSO OYJ STOCK EXCHANGE RELEASE 20 December 2010 at 09.00 EET
Stora Enso will record a net reversal of impairment charge of about EUR 238 million following the fixed asset impairment testing undertaken in the fourth quarter of 2010. The reversal of impairment charge, which will be recorded as a non-cash non-recurring item (NRI) with a positive net impact on the fourth quarter of 2010 results, is mainly due to the improvement in the outlook for consumer board, fine paper and pulp, and Stora Enso’s early cost improvement actions.
This reversal of impairment charge will increase the Group’s annual depreciation by approximately EUR 30 million and therefore correspondingly reduce the Group’s operating profit in the fourth quarter of 2010 by approximately EUR 7 million.
Impact of reversal of impairment charge on operating profit by segment:
| Segment | EUR million |
| Fine Paper | 65 |
| Consumer Board | 173 |
| Industrial Packaging | -3 |
| Wood Products | 3 |
| Group net total | 238 |
The Group will also record a negative non-cash NRI of approximately EUR 15 million in the fourth quarter 2010 operating profit related to permanent impairment of certain shares in equity accounted investments.
Tax impact
The operating profit NRIs and recognition of deferred tax assets due to the improved outlook will have a negative net tax impact of about EUR 38 million in the fourth quarter of 2010.
Stora Enso will publish its fourth quarter and full year 2010 results on 8 February 2011 at 13.00 EET (12.00 CET).
For further information, please contact:
Markus Rauramo, CFO, tel. +358 2046 21121
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