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Management Side
Stora Enso Sees Decline in Fourth Quarter 2007 Financial Performance
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Helsinki, Finland, 22 January 2008 -- Stora Enso will record nonrecurring items (NRI) with a total negative net impact of EUR 402.5 million on operating profit in its fourth quarter 2007 results.

The NRI will have a positive tax effect of EUR 112.4 million. The EUR 177.2 million cash effect of the NRI will materialize as the associated actions occur.

The NRI are as follows:
- Final net impact from the restructuring program in Kymenlaakso, Kemijärvi, Norrsundet, and Group administration amounting to EUR -349.5 million. The net impact anticipated in the announcement on 25 October 2007, was EUR -380 million. The main reason for the difference is changes in expected production closure schedules.
- Net impact of EUR -53.0 million from other provisions and write-downs due to various additional personnel reductions, site clearance, and spare part write-downs.

Forest Asset Valuations

The operating profit for the fourth quarter of 2007 will also include a positive net effect of EUR 219 million from the IAS 41 fair valuation of forest asset holdings in the associated companies Bergvik Skog (EUR 163 million), Tornator (EUR 17 million), and Veracel (EUR 39 million). These nonoperational items are reported in the segments Fine Paper (EUR 39 million) and Other (EUR 180 million).

The operating profit will also include a negative net impact of EUR 35 million from the accounting of share-based compensation, Total Return Swaps (TRS) and carbon dioxide emissions rights. These nonoperational items are reported in the segment Other.

Wood Products Financial Performance

As previously communicated in the Interim Review for the third quarter of 2007 and again on 29 November 2007, market conditions for the Wood Products business continued to weaken in the latter part of 2007 and the financial results for this segment in the fourth quarter of 2007 were very poor. The Group's operating profit for the fourth quarter of 2007, excluding the effect of NRI and the above specified nonoperational items, will therefore be clearly below the corresponding levels achieved in the fourth quarter of 2006 and the third quarter of 2007.

Discontinued Operations

The loss on the divestment of North American operations is EUR 28 million, which is included in the net income of discontinued operations.

The Group's financial results for the fourth quarter and full year 2007 will be published at 9:00 a.m. Finnish time on 13 February 2008.

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

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