Stora Enso's operating profit lower in s
STORA ENSO OYJ Stock Exchange Release 7 July 2003 at 13.00
Stora Enso's operating profit lower in second quarter than first
quarter 2003
Stora Enso expects to report that its second quarter 2003
operating profit was about half the level achieved in the first
quarter when it announces its second quarter results on 24 July
2003. However, due to decreased financial costs mainly related
to valuation of financial instruments, earnings per share are
expected to be about one third lower for the second quarter of
2003 than the first quarter.
The decrease in operating profit is due mainly to:
- the combined effects of weak economic conditions in
Europe and therefore an increase in lower-profit-
margin overseas exports from the Company's European
mills, direct and indirect effects of the fall in the
value of the US dollar and continuing overcapacity in
some paper grades;
- the weaker financial performance of the Company's North
American operations due to higher energy costs, lower
production volumes and only limited success in
increasing product prices from already low levels; and
- costs associated with the annual Midsummer holiday
shutdowns at the Company's Nordic mills, especially in
Finland.
Further comments on the Company's performance and outlook will
be provided when the second quarter financial results are
released on 24 July 2003 at 13.00 Finnish time (11.00 UK time).
For further information, please contact:
Esko Mäkeläinen, CFO, tel. +44 20 7016 3115
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
Scott Deitz, Vice President, Investor Relations, Stora Enso North
America, tel. +1 715 422 1521
Kari Vainio, Executive Vice President, Corporate Communications,
tel. +44 7799 348 197
www.storaenso.com
STORA ENSO OYJ
p.p. Jussi Siitonen Minna Taukojärvi