Stora Enso's NRI in fourth quarter 2015 have EUR 250 million negative impact on operating profit

HELSINKI, Finland, Jan. 19, 2016 (GLOBE NEWSWIRE) -- Stora Enso will record non-recurring items (NRI) with a negative net impact of approximately EUR 250 million on operating profit and a positive impact of approximately EUR 59 million on income tax in its fourth quarter 2015 results. The NRI will decrease earnings per share by EUR 0.23.

The NRIs are:

• a negative NRI of approximately EUR 236 million due to fixed asset impairments in divisions Paper and Biomaterials. The impairments in Division Paper are due to further weakened long-term earnings expectations resulting from decline in the European paper markets.
• a previously announced negative NRI in Division Paper of approximately EUR 31 million due to fixed asset impairments related to the ongoing disposal of Arapoti Mill in Brazil. The transaction is subject to regulatory approval process and estimated to be completed during the first quarter of 2016. At completion, the cumulative translation adjustment loss will be transferred from an equity reserve to the income statement as a non-recurring item. Based on the foreign exchange rate on 31 December 2015, the cumulative translation adjustment loss is estimated to be EUR 26 million.
• a negative NRI in divisions Paper and Consumer Board of EUR 19 million related to a renegotiation of long term electricity base load supply for Stora Enso's Swedish units into one harmonised contract, and adapting the yearly volumes to Stora Enso's electricity demand.
• a positive NRI in segment Other of approximately EUR 36 million related to land disposal transactions in the group's Nordic forest equity accounted investments.

The impairment charges taken in the fourth quarter 2015 reduce the quarterly depreciations by EUR 7 million starting from the fourth quarter of 2015.

ALLOCATION OF NRI BETWEEN SEGMENTS

Additionally, as earlier announced, Stora Enso's equity accounted investment Bergvik Skog AB in Sweden increases the IFRS fair value of its biological assets. Stora Enso's share of the increase, net of tax, is approximately SEK 4.0 billion (EUR 430 million). The increase in fair value will be recorded in the group's IFRS operating profit in the fourth quarter of 2015. The increase does not impact Stora Enso's operational EBIT.

Stora Enso's fourth quarter and full year 2015 results will be published on 4 February 2016.

For further information, please contact:
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wood and paper on global markets. Our aim is to replace non-renewable materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 27 000 people in more than 35 countries, and our sales in 2014 were EUR 10.2 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market.www.storaenso.com

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