Stora Enso's non-recurring items in third quarter 2009
STORA ENSO OYJ STOCK EXCHANGE RELEASE 16 October 2009 at 06.00 GMT
Stora Enso will record non-recurring items (NRI) with a negative impact of approximately EUR 655 million on operating profit, including a EUR 71 million future cash impact, in its third quarter 2009 results. The first two NRIs below, totalling EUR 604 million were announced in August 2009. The NRIs will have a beneficial impact of EUR 43 million on tax, net of tax impairment. The impact of NRIs on earnings per share is negative EUR 0.78. The non-recurring items are: - impairment charge of EUR 353 million related to goodwill and fixed asset impairment testing undertaken during the third quarter of 2009. The impairment charge was announced on 19 August 2009; - NRI of EUR 251 million related to fixed asset and working capital write-downs due to the asset restructuring plans announced on 19 August 2009; - NRI of EUR 51 million related to the Next Step programme to generate EUR 250 million of cost savings announced in April 2009. Annual depreciation will be reduced by about EUR 60 million. Allocation of NRI between segments -------------------------------------------------------------------------------- | Segment | Total | -------------------------------------------------------------------------------- | Newsprint and Book Paper | EUR 80 million | -------------------------------------------------------------------------------- | Magazine Paper | EUR 152 million | -------------------------------------------------------------------------------- | Fine Paper | EUR 314 million | -------------------------------------------------------------------------------- | Consumer Board | EUR 36 million | -------------------------------------------------------------------------------- | Industrial Packaging | EUR 28 million | -------------------------------------------------------------------------------- | Wood Products | EUR 9 million | -------------------------------------------------------------------------------- | Other | EUR 36 million | -------------------------------------------------------------------------------- | Total | EUR 655 million | -------------------------------------------------------------------------------- The Group's financial results for the third quarter of 2009 will be announced on 22 October 2009 at 9.00 Finnish time (8.00 CEST). 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, the FTSE4Good Index, and the Climate Disclosure Leadership 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