Stora Enso Oyj - Company Announcement

Stora Enso’s NRI in second quarter 2014 have EUR 106 million negative impact including a cost for planned closure of Corbehem Mill in France

Helsinki, Finland, 2014-07-21 11:59 CEST (GLOBE NEWSWIRE) -- STORA ENSO OYJ
STOCK EXCHANGE RELEASE 21 July 2014 at 12.59 EET 

Stora Enso will record non-recurring items (NRI) with a negative net impact of
approximately EUR 106 million on operating profit and a positive impact of
approximately EUR 1 million on income tax in its second quarter 2014 results.
The NRI will decrease earnings per share by EUR 0.13. 

Corbehem Mill planned closure
The main item is a negative NRI in Printing and Reading of approximately EUR 81
million due to the planned permanent closure of the loss-making Corbehem Mill
in France, including approximately EUR 7 million of non-cash write-down. The
cost of the planned closure is based on the French legal requirements. 

Since October 2012, Stora Enso has been actively searching for a solid new
owner for Corbehem Mill offering a sustainable and long-term solution for the
site and its employees. Despite significant efforts involving M&A and legal
advisors and a dedicated project team, this search proved unsuccessful. The
total operational EBITDA of the unit since the beginning of the process was a
negative EUR 34 million. 

The mill has been at standstill since January 2014. The employee
representatives' information and consultation process at the mill has now been
completed. The social plan negotiated and concluded with the trade unions was
validated by the French labour authorities on 10 June 2014. Under this social
plan, Stora Enso will offer support to Corbehem Mill employees to alleviate the
consequences of the redundancies related to the closure of the mill. 

Other non-recurring items

  -- a negative NRI in Printing and Reading of approximately EUR 34 million due
     to fixed asset impairments and inventory write-downs related to the ongoing
     disposal of Uetersen Mill in Germany
. The transaction will be delayed from the original target of mid-July due
     the regulatory approval process.
  -- a negative NRI in the segment Other of approximately EUR 9 million due to
     termination of an agreement in logistics operations.
  -- a positive NRI in the segment Other of approximately EUR 18 million due to
     land swap arrangements in the Group's equity accounted investment Bergvik
     Skog.


Allocation of NRI* between segments

Segment               EUR million
---------------------------------
---------------------------------
Printing and Reading         -115
Biomaterials                    -
Building and Living             -
Renewable Packaging             -
Other                           9
                     ------------
Operating Profit             -106
Income tax                      1
                     ------------
Net Profit                   -105
---------------------------------

*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, SVP, Investor Relations, tel. +358 2046 21242

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


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 29 000 people worldwide, and our sales in 2013 amounted to
EUR 10.6 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