Quarterly performance as anticipated, European paper and wood products markets continue to weaken
• Operational EBIT at similar level to Q1 2012, lower year-on-year at EUR 141 (EUR 239) million mainly due to lower sales prices.
• Cash flow from operations EUR 246 (EUR 207) million and liquidity EUR 1 240 (EUR 996) million, both stronger year-on-year.
• NRI with a positive net impact of EUR 56 million on net profit and EUR 0.07 impact on EPS.
• Printing and Reading and Building and Living plan additional cost reductions and temporary production curtailments in the second half of 2012.
• Strategic investments to transform the Group progressing.
• Q3 2012 sales are expected to be at roughly similar level and operational EBIT at similar level or somewhat higher than in Q2 2012.
Summary of Second Quarter Results
|
|
|
Q2/12
|
Q1/12
|
Q2/11
|
|
Sales
|
EUR million
|
2 720.4
|
2 673.3
|
2 817.1
|
|
Operational EBITDA
|
EUR million
|
248.1
|
262.1
|
357.6
|
|
Operational EBIT*
|
EUR million
|
141.2
|
147.4
|
239.1
|
|
Operating profit (IFRS)
|
EUR million
|
152.7
|
123.9
|
180.5
|
|
Profit before tax excl. NRI
|
EUR million
|
31.8
|
101.0
|
177.6
|
|
Profit before tax
|
EUR million
|
85.9
|
89.9
|
145.9
|
|
Net profit excl. NRI
|
EUR million
|
13.5
|
80.2
|
164.1
|
|
Net profit
|
EUR million
|
69.5
|
74.1
|
136.0
|
|
EPS excl. NRI
|
EUR
|
0.02
|
0.10
|
0.21
|
|
EPS
|
EUR
|
0.09
|
0.09
|
0.17
|
|
CEPS excl. NRI
|
EUR
|
0.20
|
0.28
|
0.39
|
|
Operational ROCE
|
%
|
6.5
|
6.8
|
10.9
|
*The Group has adopted operational EBIT as a key operative non-IFRS measure starting from the fourth quarter of 2011.
Operational EBIT comprises the operating profit excluding NRI and fair valuations of the segments and Stora Enso’s share of the operating profit excluding NRI and fair valuations of its equity accounted investments (EAI). Fair valuations include equity incentive schemes, synthetic options net of realised and open hedges, CO2 emission rights and valuations of biological assets related to forest assets in EAI.
Near-term Outlook
In the third quarter of 2012 Group sales are expected to be at roughly similar level and operational EBIT at similar level or somewhat higher than in the second quarter of 2012 due to improvement in variable and fixed costs.
For further information, please contact:
Jouko Karvinen, CEO, tel. +358 2046 21410
Markus Rauramo, CFO, tel. +358 2046 21121
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242
Lauri Peltola, EVP, Global Identity, tel. +358 2046 21380
Stora Enso’s third quarter 2012 results will be published on 23 October 2012 at 13.00 EET.
ANALYST CONFERENCE CALL
CEO Jouko Karvinen and SVP Investor Relations Ulla Paajanen-Sainio will be hosting a combined conference call and webcast today at 14:00 Finnish time (13:00 CET, 12:00 UK time, 07:00 US Eastern time).
If you wish to participate, please dial:
Continental Europe and the UK +44 (0)20 3140 8286
Finland +358 (0)9 6937 9543
Sweden +46 (0)8 5352 6408
USA +1 646 254 3366
Access code: 4495930
The live webcast may be accessed at www.storaenso.com/investors
www.storaenso.com
www.storaenso.com/investors
STORA ENSO OYJ
Stora Enso Interim Review January–June 2012
