updated 2/8/2011 7:16:28 AM ET 2011-02-08T12:16:28

HELSINKI, Finland, Feb. 8, 2011 (GLOBE NEWSWIRE) --

Stora Enso Fourth Quarter and Full Year Results 2010

Another solid quarter finishing a strong year, dividend increase to EUR 0.25 proposed

  • EUR 167 million quarterly operating profit excluding NRI and fair valuations, up by EUR 29 million, 21% year-on-year, EBITDA excluding NRI and fair valuations up by 27%.
  • EUR 754 million full year operating profit excluding NRI and fair valuations, up by EUR 434 million, 135%, EBITDA excluding NRI and fair valuations up by 51%.
  • Maintenance costs were EUR 34 million higher in Q4 2010 than Q3 2010. Volumes lost due to maintenance decreased operating profit by EUR 20 million.
  • Cost inflation forecast to be 3% for the full year 2011, primarily in the first half of the year, own actions targeted to compensate all of it.
  • Strong pricing momentum continues, especially in newsprint and magazine paper.
  • Operating profit excluding NRI and fair valuations is expected to be sequentially higher in Q1 2011.

Summary of Fourth Quarter Results

    Q4/10 2010 Q4/09 2009
Sales EUR million 2 685.2 10 296.9 2 398.8 8 945.1
EBITDA excl. NRI and fair valuations EUR million 288.8 1 216.5 227.2 (1 807.8 (1
Operating Profit excl. NRI and Fair Valuations EUR million 166.8 754.1 137.5 320.5
Operating profit/loss (IFRS) EUR million 410.9 1 026.8 105.3 -607.6
Profit before tax excl. NRI EUR million 187.0 745.7 122.7 194.2
Profit/loss before tax EUR million 389.2 925.9 80.6 -886.8
Net profit excl. NRI EUR million 148.7 627.0 76.0 153.2
Net profit/loss EUR million 313.0 769.3 45.9 -878.2
EPS excl. NRI EUR 0.19 0.79 0.09 0.19
EPS EUR 0.39 0.97 0.05 -1.12
CEPS excl. NRI EUR 0.37 1.46 0.29 0.92
ROCE excl. NRI % 9.9 10.3 7.5 3.9
ROCE excl. NRI and fair valuations % 7.9 9.2 7.0 3.9

1) See Key Figures table.

Fair valuations include synthetic options net of realised and open hedges, CO2 emission rights, and valuations of biological assets related to forest assets in equity accounted investments.NRI = Non-recurring items. These are exceptional transactions that are not related to normal business operations. The most common non-recurring items are capital gains, additional write-downs or reversals of write-downs, provisions for planned restructuring and penalties. Non-recurring items are normally specified individually if they exceed one cent per share.

Near-term Outlook

Demand for newsprint is expected to be slightly weaker in Europe but unchanged on a year ago in overseas markets. In Europe demand for coated magazine paper is forecast to be slightly stronger and demand for uncoated magazine paper stronger than a year ago.

Demand for fine paper is predicted to be similar to a year ago, although seasonally slightly stronger than in the fourth quarter of 2010. Demand for consumer board is expected to be stronger and demand for industrial packaging slightly stronger than a year ago. Demand for wood products is anticipated to be slightly stronger than a year ago but slightly weaker than in the fourth quarter of 2010.

Newsprint prices in euros in the first half of 2011 are expected to be similar to 2009 levels in Europe and significantly higher than 2009 levels in overseas markets. With the majority of biannual magazine paper contracts signed, magazine paper sales prices in local currencies are expected to be higher in the first half of 2011 than the previous quarter.

Fine paper prices are predicted to be similar to the previous quarter. Consumer board and industrial packaging prices are forecast to be slightly higher than in the previous quarter. Slightly lower prices forwood products than in the fourth quarter of 2010 are anticipated.

The political turmoil in North Africa and floods in Australia are expected to have a negative impact on the earnings capability of Wood Products in the first quarter of 2011.

Group operating profit excluding NRI and fair valuations is anticipated to be higher in the first quarter of 2011 than the fourth quarter of 2010 due to the improved cost position and prices.

The Group expects its cost inflation excluding internal actions to be 3% for the full year 2011, primarily in the first half of the year. Stora Enso's own actions are expected to compensate all of the effects of cost inflation. Actual cost inflation excluding internal actions was 2% for the full year 2010.

The full-length version of the Stora Enso interim review is available on the Stora Enso website at www.storaenso.com/investors

Stora Enso's first quarter 2011 results will be published on 20 April 2011.

Stora Enso is a global paper, packaging and wood products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products. The Group 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 listed in the Dow Jones Sustainability Index and the FTSE4Good Index. Stora Enso employs some 26 000 people worldwide, and our sales in 2010 amounted to EUR 10.3 billion. Stora Enso shares are listed on NASDAQ OMX (Helsinki:STEAV) (Helsinki:STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (Pink Sheets:SEOAY) in the International OTCQX over-the-counter market.

It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by "believes", "expects", "anticipates", "foresees", or similar expressions, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Since these statements are based on current plans, estimates and projections, they involve risks and uncertainties, which may cause actual results to materially differ from those expressed in such forward-looking statements. Such factors include, but are not limited to: (1) operating factors such as continued success of manufacturing activities and the achievement of efficiencies therein, continued success of product development, acceptance of new products or services by the Group's targeted customers, success of the existing and future collaboration arrangements, changes in business strategy or development plans or targets, changes in the degree of protection created by the Group's patents and other intellectual property rights, the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for the Group's products and the pricing pressures thereto, price fluctuations in raw materials, financial condition of the customers and the competitors of the Group, the potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in the Group's principal geographic markets or fluctuations in exchange and interest rates.

www.storaenso.com

www.storaenso.com/investors

STORA ENSO OYJ

For further information, please contact:

Jouko Karvinen, CEO, tel. +358 2046 21410

Markus Rauramo, CFO, tel. +358 2046 21121

Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242

Lauri Peltola, Head of Communications and Global Responsibility, tel. +358 2046 21380

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