HELSINKI, Finland, Oct. 16 /Xinhua-PRNewswire/ -- As already announced, Stora Enso will record two non-recurring items (NRI) in its third quarter of 2007 results.  These non-recurring items will have a total negative net impact of EUR 550 million on operating profit and a positive tax impact of EUR 111 million in the third quarter, and will reduce the depreciation charge by about EUR 50 million on an annual basis. 

    The non-recurring items affecting operating profit are:

    -- a non-cash impairment charge of EUR 560 million; 
    -- a positive NRI of EUR 10 million from the sale of Reisholz Mill site real estate.

    The impairment charges by the new segments are as follows:


      EUR million                         Fixed Assets    Goodwill    Total
    Magazine Paper                             118           110       228 
    Fine Paper                                  33                      33 
    Consumer Board                             187                     187 
    Industrial Packaging                         6                       6 
    Wood Products                               52            54       106 
    Group Total                                396           164       560 


    The results of associated companies will be reported as part of operating profit from the third quarter of 2007 onwards, as these companies are clearly part of the value chain of operations. Previous quarters have been adjusted accordingly. The five largest associated companies are:


    Associated Company         Business Area         Reporting Segment   
     Bergvik                    Wood Supply           Other               
     Tornator                   Wood Supply           Other               
     Veracel                    Fine Paper            Fine Paper          
     Sunila                     Magazine Paper        Magazine Paper      
     Thiele Kaolin              Other Operations      Other               

   
    As part of the reorganisation announced on 5 September 2007, the Speciality Paper Business Area was dissolved.  The speciality paper machine (PM 6) at Imatra Mills in Finland was transferred to the Consumer Board Business Area and the speciality paper machine (PM 1) at Utersen Mill in Germany was transferred to the Fine Paper Business Area. Before the reorganisation, the Speciality Paper Business Area was part of the Packaging Board Division.  Previous quarters have also been adjusted accordingly for these changes.

    Commencing with the third quarter of 2007, the sales and operating profit of Wood Supply will be included in Segment Other and will not be reported separately because the earnings of this cost centre are relatively immaterial.

    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.  




 
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