Stora Enso?s Q2 2005 results impacted by labour dispute effects and non-recurring item
STORA ENSO OYJ Stock Exchange Release 6 July 2005 at 16.00
Stora Ensos Q2 2005 results impacted by labour dispute effects and non-recurring item A new collective labour agreement for the paper industry in Finland was signed on 1 July 2005. Prior to signing the new agreement, the labour dispute resulted in the cessation of Finnish production for about seven weeks during the second quarter. At the time of the publication of Stora Ensos financial results for the first quarter of 2005, the company estimated that disruption to its production in Finland would reduce the Groups operating profit by about EUR 3 million per day. It can now be confirmed that therefore the Q2 2005 results are negatively impacted by approximately EUR 150 million due to the impact of the labour dispute. Production has recommenced at all of the Groups production units in Finland. However, full production of saleable quality will not be achieved until the second week of July. The Groups third quarter 2005 results will therefore be affected by the machine start-ups in the first week of the quarter. The new labour agreement, with its significant changes to working practices, will help to ensure the long-term competitiveness of the Finnish forest products industry. Non-recurring item The second quarter 2005 results will also be affected by the decision to impair the fixed asset value of Veitsiluoto Sawmill in Finland by approximately EUR -12 million. Further comments on the Groups performance and outlook will be provided when the second quarter results are published on Wednesday 27 July 2005 at 13.00 Finnish Time. For further information, please contact: Esko Mäkeläinen, Chief Financial Officer, tel. +44 20 7016 3115 Kari Vainio, Executive Vice President, Corporate Communications, tel. +44 7799 348197 Keith B Russell, Senior Vice President, Investor Relations, tel. +44 7775 788659 Ulla Paajanen-Sainio, Vice President, Investor Relations and Financial Communications, tel. +358 40 763 8767 STORA ENSO OYJ p.p. Anu Vesmanen Veli-Matti Tahvanainen