Stora Enso Oyj - Company Announcement

Stora Enso's fourth quarter 2008 operating profit clearly negatively impacted by extensive production curtailments, as anticipated in October, and by wood inventory writedowns; significant production curt

Stora Enso's fourth quarter 2008 operating profit clearly negatively impacted
by extensive production curtailments, as anticipated in October, and by wood
inventory writedowns; significant production curtailments will continue during
first half of 2009 
The Group will take an impairment charge of about EUR 670 million in fourth
quarter 2008 

STORA ENSO OYJ STOCK EXCHANGE RELEASE 19 January 2009 at 07.00 GMT

Stora Enso aggressively curtailed production to match weaker demand and reduce
inventories in the fourth quarter of 2008, as envisaged in the third quarter
Interim Review, to ensure the Group started 2009 with inventory levels
appropriate for the challenging year to come. The production curtailments and
wood inventory writedowns had a clearly unfavourable impact on Stora Enso's
fourth quarter earnings. Significant paper and board production curtailments as
well as curtailments in pulp and sawmill operations will be continued during
the first half of 2009, in addition to the curtailments in Wood Products
announced on 30 October 2008, owing to the weakened demand of the Group's
products. 

In the fourth quarter of 2008, the Group curtailed paper and board production
by about 490 000 tonnes, which is a reduction equivalent to about 15% of the
Group's paper and board production capacity, pulp production by about 240 000
tonnes (20% of capacity) and sawnwood production by 300 000 m3 (30% of
capacity). 

Impairment charge and other non-recurring items
Goodwill and fixed asset impairment testing undertaken in the fourth quarter of
2008 will have a negative impact of about EUR 670 million on the fourth quarter
operating profit. Provisions recorded for the fourth quarter of 2008 mainly
related to already announced restructurings will total approximately EUR 98
million, of which about half will have a cash impact in 2009. The impairment
charge is mainly due to the weaker outlook for many of the Group's products. 

Details of the impairment charge and other non-recurring items, including the
allocation between the Business Areas, will be announced in the connection with
the fourth quarter and full year 2008 results on 5 February 2009. 

For further information, please contact:
Markus Rauramo, CFO, tel. +358 2046 21121
Keith Russell, Senior Vice President, Investor Relations, tel. +44 7775 788659
Ulla Paajanen-Sainio, Vice President, Investor Relations and Financial
Communications, 
tel. +358 2046 21242

www.storaenso.com
www.storaenso.com/investors


STORA ENSO OYJ


Jari Suvanto		Ulla Paajanen-Sainio