Stora Enso's Q3 2002 profit excluding non-recurring items improved
Long versions: 
Stora Enso's earnings per share excluding non-recurring items were EUR 0.15 (EUR 0.12) in the third quarter. Profit before taxes and minority interests, excluding non-recurring items, amounted to EUR 196.8 (EUR 154.6) million. The operating profit excluding non-recurring items was EUR 255.4 (EUR 190.2) million. The non-recurring items of the third quarter totalled EUR -1 229.5 million, comprising mainly EUR -54.0 (USD -50.0) million associated with the North American Profit Enhancement Plan and EUR 1 166.7 (USD 1 081) million of impairment charges.
Sales of EUR 3 108.6 million were 3.8% less than the previous quarter's EUR 3 233.0 million. Cash flow from operations was EUR 565.5 (EUR 710.1) million. The cash flow after investing activities amounted to EUR 380.3 (EUR 535.9) million, and the cash earnings per share excluding non-recurring items, EUR 0.51 (EUR 0.48). Market-related production curtailments totalled 271 000 tonnes (326 000 tonnes).
|
EUR million |
2001 |
I-III/01 |
I-III/02 |
I/02 |
II/02 |
III/02 |
|
Sales |
13 508.8 |
10 225.9 |
9 570.5 |
3 228.9 |
3 233.0 |
3 108.6 |
|
Magazine Paper |
3 449.0 |
2 589.5 |
2 235.4 |
767.3 |
721.0 |
747.1 |
|
Newsprint |
1 933.9 |
1 464.3 |
1 229.2 |
412.8 |
413.2 |
403.2 |
|
Fine paper |
3 617.5 |
2 764.0 |
2 365.1 |
827.1 |
787.0 |
751.0 |
|
Packaging Boards |
2 724.0 |
2 078.9 |
2 306.7 |
766.2 |
781.9 |
758.6 |
|
Timber Products |
1 180.5 |
885.3 |
921.0 |
286.1 |
320.8 |
314.1 |
|
Other activities
and eliminations |
603.9 |
443.9 |
513.1 |
169.4 |
209.1 |
134.6 |
|
Operating profit excl. non-rec. items |
1 495.2 |
1 208.4 |
719.6 |
274.0 |
190.2 |
255.4 |
|
Operating profit* |
1 486.9 |
1 216.8 |
-458.3 |
274.0 |
241.8 |
-974.1 |
|
Magazine Paper |
346.9 |
269.8 |
53.5 |
31.6 |
2.3 |
19.6 |
|
Newsprint |
508.8 |
388.4 |
198.4 |
72.8 |
61.1 |
64.5 |
|
Fine paper |
394.5 |
320.1 |
236.4 |
93.1 |
73.1 |
70.2 |
|
Packaging Boards |
346.2 |
302.8 |
287.5 |
100.6 |
70.7 |
116.2 |
|
Timber Products |
12.6 |
16.0 |
35.0 |
11.2 |
14.1 |
9.7 |
|
Other activities
and eliminations |
-122.1 |
-80.3 |
-1 269.1 |
-35.3 |
20.5 |
-1 254.3 |
|
Profit before tax and minority interests |
1 223.0 |
973.8 |
-586.0 |
240.5 |
206.2 |
-1 032.7 |
|
Profit before tax and minority interests excl. non-recurring items |
1 231.3 |
965.4 |
591.9 |
240.5 |
154.6 |
196.8 |
|
Net profit for the period |
926.3 |
651.8 |
-699.7 |
161.0 |
138.0 |
-998.7 |
|
EPS, Basic, EUR |
1.03 |
0.72 |
-0.78 |
0.18 |
0.15 |
-1.12 |
|
EPS, excl. non-rec. items, EUR |
0.94 |
0.72 |
0.45 |
0.18 |
0.12 |
0.15 |
|
ROCE, excl. non-rec. items, % |
10.8 |
11.7 |
7.2 |
7.8 |
5.6 |
7.9 |
|
Debt/equity ratio |
0.53 |
0.55 |
0.53 |
0.59 |
0.46 |
0.53 |
*Operating profit includes net non-recurring items of EUR -8.3 million in 2001, EUR 8.4 million in I-III/2001, EUR -1 177.9 million in I-III/2002, EUR 51.6 million in II/2002 and EUR -1 229.5 million in III/2002.
Commenting on the results and market outlook, Stora Enso's CEO Jukka Härmälä said, "Markets remained demanding in the third quarter. In Western Europe prices on average deteriorated due to excess capacity in certain grades. In North America markets strengthened slightly due in part to a seasonal upturn. Some modest improvement in demand is now apparent in advertising-driven paper grades, but only from low levels. The upturn began earlier and has been more pronounced in the USA than Europe. Markets for consumer-driven paper and board grades such as office paper and packaging boards are generally firm, but have recently been showing signs of slight weakening. It remains to be seen whether this is a temporary fluctuation. Markets for wood products should remain stable for the rest of the year, but prospects thereafter will depend on the US housing market. The fourth quarter results will, as usual, reflect the holiday season maintenance shutdowns in Finland."
For further information, please contact:
Jukka Härmälä, Chief Executive Officer, tel. +44 20 8432 1520
Björn Hägglund, Deputy Chief Executive Officer, tel. +44 20 8432 1530
Esko Mäkeläinen, CFO, tel. +44 20 8432 1540
Kari Vainio, EVP, Communications, tel. +44 77 9934 8197
Keith B Russell, SVP, Investor Relations, tel. +44 20 8432 1552
The full-length version of the Stora Enso interim review is available on the Stora Enso website at http://www.storaenso.com/investors.
Stora Enso's results for 2002 will be published on 30 January 2003.
It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by "believes", "expects", "anticipates", "foresees", or similar expressions, are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Since these statements are based on current plans, estimates and projections, they involve risks and uncertainties, which may cause actual results to differ materially from those expressed in such forward-looking statements. Such factors include, but are not limited to: (1) operating factors such as continued success of manufacturing activities and the achievement of efficiencies therein, continued success of product development, acceptance of new products or services by the Group's targeted customers, success of existing and future collaboration arrangements, changes in business strategy or development plans or targets, changes in the degree of protection created by the Group's patents and other intellectual property rights, the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for the Group's products and the pricing pressures thereto, price fluctuations in raw materials, financial condition of the customers and the competitors of the Group, the potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in the Group's principal geographic markets or fluctuations in exchange and interest rates.
