Stora Enso Interim Review January-March 2013

Tue Apr 23, 2013 7:15am EDT

* Reuters is not responsible for the content in this press release.

HELSINKI, Finland, April 23, 2013 (GLOBE NEWSWIRE) --

Q1 2013 (compared with Q1 2012)

  • Operational EBITDA EUR 240 (EUR 265) million.
  • Operational EBIT EUR 118 (EUR 150) million due to lower performance in Printing and Reading. Improvement in Biomaterials, Renewable Packaging and wood supply.
  • EPS excluding NRI EUR 0.07 (0.10) and EPS EUR -0.02 (0.09).
  • Cash flow from operations EUR 101 (EUR 223) million affected by working capital increase. Strong liquidity at EUR 1.7 (EUR 1.25) billion.

Q1 2013 (compared with Q4 2012)

  • Operational EBITDA EUR 240 (EUR 276) million.
  • Operational EBIT EUR 118 (EUR 158) million due to lower performance in Printing and Reading. Improvement in Renewable Packaging and wood supply.
  • Ratio of net debt to the last twelve months' operational EBITDA 2.7 (2.5).

Actions and outlook

  • Final approvals to build plantation-based integrated board and pulp mills at Beihai city in Guangxi, China still pending.
  • Ostroleka containerboard machine PM 5 started up in January.
  • Montes del Plata Pulp Mill has initiated the commissioning of the main equipment and expects to begin the mill start-up process during Q3/2013.
  • Earlier announced restructuring plans progressing as planned in Printing and Reading. New plans announced to simplify and streamline Group and business structures aiming at reducing annual costs by EUR 200 million, including the earlier announced EUR 30 million in Building and Living.
  • Q2 2013 sales expected to be slightly higher and operational EBIT in line with or slightly higher than Q1 2013.

Summary of First Quarter Results*

    Q1/13 Q4/12 Q1/12
Sales EUR million 2 667 2 727 2 673
Operational EBITDA EUR million 240 276 265
Operational EBIT** EUR million 118 158 150
Operating profit (IFRS) EUR million 20 254 127
Profit before tax excl. NRI EUR million 55 83 101
Loss/profit before tax EUR million -36 204 90
Net profit excl. NRI EUR million 56 89 80
Net loss/profit EUR million -16 266 74
EPS excl. NRI EUR 0.07 0.11 0.10
EPS EUR -0.02 0.33 0.09
CEPS excl. NRI EUR 0.25 0.30 0.28
Operational ROCE % 5.4 7.3 6.9

* Data for the comparative periods have been restated following adoption of the amended IAS 19 Employee Benefits standard. Data for the comparative periods have been restated in all tables affected by IAS 19. For further details, please see Basis of Preparation.

** 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 second quarter of 2013 Group sales are expected to be slightly higher and operational EBIT in line with or slightly higher than the first quarter of 2013. 

Ostroleka Mill PM 5 is not expected to have a material impact on sales in 2013 due to sales being mainly internal, but the EBITDA margin of PM 5 from the second half of 2013 is expected to be approximately 20%.

Montes del Plata Pulp Mill is expected to have limited impact on the Group's sales and slightly negative impact on operational EBIT in 2013. In 2014 the Group's sales are expected to be affected by 650 000 tonnes of Montes del Plata pulp with full positive EBITDA impact in the latter part of the year 2014 provided that the current market conditions prevail.

For further information, please contact:
Jouko Karvinen, CEO, tel. +358 2046 21410
Karl-Henrik Sundstrom, CFO, tel. +46 1046 71660
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242
Sanna Lahti, SVP, Global Communications, tel. +358 2046 21251

The full-length version of the Stora Enso interim review is available on the Stora Enso website at www.storaenso.com/investors

Stora Enso's second quarter 2013 results will be published on 19 July 2013 at 13.00 EET.

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 28 000 people worldwide, and our sales in 2012 amounted to EUR 10.8 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.

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 materially differ 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 the 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.

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

STORA ENSO OYJ

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