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Stora Enso’s non-recurring items in fourth quarter 2006

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STORA ENSO OYJ  Stock Exchange Release 18 January 2007 klo 14.00


Stora Enso’s non-recurring items in fourth quarter 2006

Stora Enso will record the following non-recurring items in its 
fourth quarter 2006 results:
- positive impacts of EUR 30 million on operating profit and 
EUR 102 million on taxes from provisions released due to the 
settlement of tax cases;
- a capital gain of EUR 33 million from the sale of Finnlines 
Oyj shares affecting net financial items, as announced on 30 
November 2006;
- a positive impact of EUR 30 million on operating profit from 
a decrease in pension expenses due to a change in the Group’s 
accounting policy with respect to the recognition of 
actuarial gains and losses arising from defined benefit 
pension plans.

The non-recurring items affecting operating profit and net 
financial items, totalling EUR 93 million, will have a tax effect 
of EUR 32 million.

Change in accounting policy
Stora Enso has changed its accounting policy with respect to the 
recognition of actuarial gains and losses arising from defined 
benefit pension plans. This change in policy is in accordance with 
“Amendment to IAS 19 Employee Benefits – Actuarial Gains and 
Losses, Group Plans and Disclosures”.

The Group now recognises all actuarial gains and losses arising 
from defined benefit plans directly in equity. In its financial 
statements for the periods beginning before 1 January 2006, the 
Group applied the ‘corridor method’ to recognise in profit or loss 
actuarial gains and losses over the expected average remaining 
working lives of employees in the plan.

By adopting this amendment the Group balance sheet fully reflects 
the actual surplus or deficit in its Defined Benefit Plans and 
thereby aligning the net position on the Balance Sheet with the 
actual liability in the Plans. The change follows also the similar 
changes in US GAAP released in 2006.

For more information, please contact:
Hannu Ryöppönen, CFO, tel. +44 20 7016 3114
Keith B Russell, SVP, Investor Relations, tel. +44 7775 788 659
Ulla Paajanen-Sainio, VP, Investor Relations and Financial 
Communications, 
tel. +358 2046 21242

www.storaenso.com
		


STORA ENSO OYJ



p.p.	Jussi Siitonen		Leena Bergqvist

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