Stora Enso's Non-recurring Items in First Quarter 2007

2007-04-18 18:05 713

SHANGHAI, China, April 18 /Xinhua-PRNewswire/ -- 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

Stora Enso is an integrated paper, packaging and forest products company producing publication and fine paper, packaging board and wood products - all areas in which the Group is a global market leader. Stora Enso's sales totalled EUR 14.6 billion in 2006. The Group has some 44 000 employees in more than 40 countries on five continents. Stora Enso has an annual production capacity of 16.5 million tonnes of paper and board and 7.4 million cubic metres of sawn wood products, including 3.2 million cubic metres of value-added products. Stora Enso's shares are listed in Helsinki, Stockholm and New York.

Source: Stora Enso China
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