Stora Enso's non-recurring items in fourth quarter 2009
STORA ENSO OYJ STOCK EXCHANGE RELEASE 22 January 2010 at 07.00 GMT
Stora Enso will record non-recurring items (NRI) with a negative impact of
approximately EUR 42 million on operating profit, including a EUR 20 million
future cash impact, in its fourth quarter 2009 results. The NRIs will have a
beneficial impact of approximately EUR 12 million on tax. The impact of the NRIs
on earnings per share will be negative EUR 0.04. The NRI are:
- negative NRI of EUR 30 million related to the penalty imposed by the Finnish
Market Court for collaboration and exchange of information with other forest
products companies concerning prices for purchasing roundwood in Finland from
1997 to 2004 as announced on 3 December 2009;
- impairment charge of approximately EUR 26 million in the Magazine Paper
segment
related to fixed asset impairment testing undertaken during the fourth quarter
of 2009;
- negative NRI of approximately EUR 15 million related to permanent impairment
of
certain Pohjolan Voima's (PVO) subsidiary shares;
- positive NRI of approximately EUR 19 million related to the disposal of Stora
Enso Uruguay S.A upon the creation of Montes del Plata joint venture between
Stora Enso and Arauco and Stora Enso's share of negative goodwill recognised in
connection with the joint acquisition of Grupo ENCE's assets in Uruguay. The
amount is subject to finalisation of the fair valuation process;
- positive NRI of approximately EUR 10 million of restructuring provision
released
following the decision to restart production at Sunila Pulp Mill, as announced
on 30 November 2009.
Stora Enso's annual depreciation will be about EUR 500 million after these
impairment charges.
Allocation of NRI between segments
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| NRI | Segment | EUR million |
--------------------------------------------------------------------------------
| Fixed asset | Magazine Paper | -26 |
| impairment test | | |
--------------------------------------------------------------------------------
| Sunila | Magazine Paper | 10 |
--------------------------------------------------------------------------------
| | Magazine Paper Total | -16 |
--------------------------------------------------------------------------------
| PVO shares | Other | -15 |
--------------------------------------------------------------------------------
| Market Court penalty | Other | -30 |
--------------------------------------------------------------------------------
| Uruguay | Other | 19 |
--------------------------------------------------------------------------------
| | Other Total | -26 |
--------------------------------------------------------------------------------
| Group Total | | -42 |
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The Group's financial results for the fourth quarter and full year 2009 will be
published on 4 February 2010 at 9.00 Finnish time (8.00 CET).
For further information, please contact:
Markus Rauramo, CFO, tel. +358 2046 21452
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
www.storaenso.com
www.storaenso.com/investors
Stora Enso 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 included in the Global 100 list of the world's
most sustainable companies. Stora Enso is also listed in the Dow Jones
Sustainability Index and the FTSE4Good Index. Stora Enso employs 29 000 people
worldwide, and our sales in 2008 amounted to EUR 11.0 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
Jari Suvanto Ulla Paajanen-Sainio