SOURCE: Stora Enso Oyj

April 16, 2007 09:12 ET

Stora Enso's non-recurring items in first quarter 2007

HELSINKI, FINLAND -- (MARKET WIRE) -- April 16, 2007 -- Stora Enso Oyj News Release April 16, 2007 at 13.00 GMT

HELSINKI, Finland - Stora Enso (NYSE: SEO) today announced that Stora Enso will record two non-cash, non-recurring items affecting operating profit totalling positive net EUR 32 million in its first quarter 2007 results. The non-recurring items will increase tax expenses by EUR 16.7 million. There will be a positive impact of EUR 0.02 on earnings per share.

As previously announced, a new five-year labour agreement was signed in January 2007 with United Steelworkers in Central Wisconsin, USA. Subsequently, the Group signed new agreements with other unions in the paper industry in the USA. Therefore, in addition to the earlier announced USD 40.8 million income, the Group is recording USD 16.9 million of income relating to the new agreements. The total non-recurring income of USD 57.7 (EUR 44.0) million will correspondingly reduce personnel expenses in the first quarter of 2007.

As announced on 7 March 2007, the Company will also record a write-down and restructuring provision totalling about EUR 12 million related to closure of Sauga Sawmill in Estonia.

Net impacts on operating profit by segment are:

Publication Paper   EUR 13.3 million
Fine Paper          EUR 19.2 million
Packaging Boards    EUR 4.3 million
Wood Products       EUR -12.0 million
Other               EUR 7.2 million
Total               EUR 32.0 million

For more information, please contact:
Tim Laatsch, Senior Vice President, Communications, Stora Enso North
tel. 715 422 4023

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