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Stora Enso's operating profit lower in f

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STORA ENSO OYJ  Stock Exchange Release 20 January 2004 at 14.30


Stora Enso's operating profit lower in fourth quarter than third 
quarter 2003

Stora Enso Oyj is expected to report approximately one-half lower 
operating profit for the fourth quarter than the third quarter of 
2003. The decrease is due to:
-	an increased proportion of lower margin overseas sales;
-	impact of the declining US dollar;
-	holiday season shut-downs in the Nordic mills, especially in 
	Finland;
-	the paper workers' union strike in Finland in December 2003;
-	the cost of certain redundancy measures implemented at mills 
	and included in the operating result; and
-	delays in the start-ups of some investments.

Non-recurring items in fourth quarter 2003
Stora Enso's non-recurring items for the fourth quarter totalled 
approximately EUR -68.5 million. This amount includes a write-down 
of USD 16.4 (EUR 14.5) million for expected capital loss on the 
sale of forestland in Ontario, Canada and USD 61.1 (EUR 54.0) 
million due to the provision for expected losses from termination 
of the US cross-border leasing contracts. The provision will be 
entered in "other financial items".

US cross-border leases
Stora Enso is in the process of terminating the portfolio of 
financing leases that its North American subsidiary currently has 
in place with a group of UK banks. The leasing contracts were 
entered in 1996 and would expire without an early termination in 
2011. As a consequence of the changing interpretation of tax rules 
regarding leasing in the UK, termination of the leases has been 
determined to be desirable. The financing leases involve paper 
machine 16 at Wisconsin Rapids, Wisconsin and paper machine 26 at 
Biron, Wisconsin.

The transaction is expected to be closed by the end of the first 
quarter of 2004. At termination, restricted cash deposits of USD 
560 (EUR 443.6) million relating to the leases will be utilised to 
satisfy the final lease obligations. A provision of USD 61.1 (EUR 
54.0) million for additional pre-tax leasing costs arising from 
the early termination of the financing leases will be included in 
"other financial items" in the Q4 2003 accounts. The impact after 
taxes is USD 36.7 (EUR 32.4) million.

The EUR/USD exchange rates used in this press release are 1.1320 
(average rate) and 1.2630 (closing rate).

Further comments on the Group's performance and outlook will be 
provided when the fourth quarter and full year financial results 
are released on Wednesday 4 February at 13.00 Finnish time (11.00 
GMT).

For further information, please contact:
Esko Mäkeläinen, CFO, tel. +44 20 7016 3115
Kari Vainio, Executive Vice President, Corporate Communications, 
tel. +44 7799 348 197
Keith B Russell, Senior Vice President, Investor Relations, 
tel. +44 20 7016 3146
Ulla Paajanen-Sainio, Vice President, Investor Relations and 
Financial Communications,  tel. +358 2046 21242

www.storaenso.com
		
STORA ENSO OYJ



p.p. Jussi Siitonen	Jukka Marttila

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