HELSINKI, Finland, Feb. 5, 2014 (GLOBE NEWSWIRE) -- STORA ENSO OYJ STOCK EXCHANGE RELEASE 5 February 2014 at 12.57 EET
Stora Enso will record non-recurring items (NRI) with a negative net impact of approximately EUR 392 million on operating profit and a positive impact of approximately EUR 114 million on income tax in its fourth quarter 2013 results. The NRI will lower earnings per share by EUR 0.33.
The NRI are:
- a negative NRI of approximately EUR 556 million due to fixed asset impairments mainly in Printing and Reading because of weakened long-term earnings expectations resulting from decline in European paper markets;
- a negative NRI of approximately EUR 32 million due to costs related to joint-venture establishment in China, a production disruption in Renewable Packaging and settlement of a legal case with a supplier at the Group's equity accounted investment Veracel;
- a positive NRI of approximately EUR 179 million due to a fair valuation gain and a related provision release of EUR 7 million on the Group's plantation assets in China;
- a positive NRI of approximately EUR 10 million due to the Group's share of the effect of the new tax rate on the equity accounted investment Tornator.
The positive impact of approximately EUR 114 million on the income tax comprises a positive tax impact of approximately EUR 106 million due to the operative NRIs, a positive tax impact of approximately EUR 40 million due to valuation of deferred tax assets and a negative tax impact of approximately EUR 32 million due to application of the new tax rate in Finland.
The impairment charges taken in the fourth quarter of 2013 reduce quarterly depreciation by EUR 19 million starting in the fourth quarter of 2013. Annual depreciation will decrease by EUR 76 million from 2014 onwards due to the reduced fixed asset base after the impairments.
Allocation of NRI* between segments
|Printing and Reading||-538|
|Building and Living||-|
*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 disclosed individually if they exceed one cent per share.
For further information, please contact:
Seppo Parvi, CFO, tel. +358 2046 21205
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry. We always rethink the old and expand to the new to offer our customers innovative solutions based on renewable materials. Stora Enso employs some 28 000 people worldwide, and our sales in 2012 amounted to EUR 10.8 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.
STORA ENSO OYJ
Source: Stora Enso Oyj