Stora Enso will take an impairment charge of about EUR 347 million in the third quarter of 2009
STORA ENSO OYJ STOCK EXCHANGE RELEASE 19 August 2009 at 06.01 GMT
Stora Enso has undertaken goodwill and fixed asset impairment testing during the
third quarter of 2009. The resultant impairment charge will have a negative
non-cash impact of about EUR 347 million on the Group's third quarter operating
profit, which will be reported as non-recurring item. This impairment charge is
in addition to the fixed asset impairment of EUR 245 million announced earlier
today in respect of asset restructuring. The impairment charge is due to the
weak long-term outlook, especially for publication and fine papers.
The debt equity ratio will increase from 0.53 to 0.59 (based on the second
quarter 2009 debt to equity ratio) as a result of the combined impact of the
fixed asset impairment testing and asset restructuring.
Allocation of impairment charge between segments
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| Segment | Impairment Q3/2009* |
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| Newsprint | EUR 30 million |
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| Magazine Paper | EUR 116 million |
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| Fine Paper | EUR 155 million |
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| Consumer Board | EUR 24 million |
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| Industrial Packaging | EUR 22 million |
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| Total | EUR 347 million |
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*All charges have no cash impact.
For further information, please contact:
Markus Rauramo, CFO, tel. +358 2046 21452
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 40 763 8767
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 OYJ
Jari Suvanto Ulla Paajanen-Sainio