Key Developments: Stora Enso Oyj (STEAV.HE)
6.30EUR
11:30am EDT
€0.05 (+0.80%)
€6.25
€6.22
€6.30
€6.11
1,302
2,519
€7.30
€5.30
Latest Key Developments (Source: Significant Developments)
Stora Enso Oyj Issues Q2 2013 Financial Guidance in Line with Analysts' Estimates
Stora Enso Oyj announced that the Company expects Q2 2013 sales to be slightly higher than Q1 2013 sales result and operational EBIT to be in line with or slightly higher than the Q1 2013 figure. In Q1 2013 the Company reported sales of EUR 2,667 million and operational EBIT of 118 million. According to I/B/E/S Estimates, analysts on average are expecting the Company to report revenue of EUR 2,706.85 million and EBIT of 124.19 million in Q2 2013. Full Article
Stora Enso Oyj Reorganizes Business Structure Subject to Outcome of Co-determination Negotiations; Company to Recruit New CFO
Stora Enso Oyj announced that it plans to launch a Group streamlining and structure simplification project intended to achieve annual fixed cost savings of EUR 200 million, including the earlier announced EUR 30 million in the Building and Living Business Area, with the full impact starting from the second quarter of 2014. The project is to include all Business Areas and corporate functions. It is planned to change from four Business Areas to three Divisions by integrating the current Building and Living Business Area with the Printing and Reading Business Area in a new Division mainly focusing on mature businesses and geographies. The other two Divisions would be the existing Renewable Packaging and Biomaterials Business Areas. It is planned that the Divisions and corporate functions would undergo organizational streamlining. Further outsourcing alternatives in Group shared services and sale of non-core assets will be considered. As far as possible, it is planned to centralize functions in one location instead of several. The planned new Division combining the current Building and Living Business Area with the Printing and Reading Business Area would be led by Karl-Henrik Sundstrom, currently Chief Financial Officer (CFO) of Stora Enso. The Company will immediately begin the process of recruiting a new CFO. The plans announced concerning the Division structure would be effective by July 1, 2013. All detailed plans are subject to the outcome of co-determination negotiations. Full Article
Stora Enso Oyj Comments On Q1 2013 Guidance
Stora Enso Oyj announced that first quarter 2013 sales expected to be at roughly similar level but operational EBIT in the order of magnitude one-third lower than in fourth quarter of 2012 due to deterioration in European paper and Building and Living markets. Full Article
Stora Enso Oyj Proposes FY 2012 Dividend of EUR 0.30 per Share
Stora Enso Oyj announced that the Board of Directors proposes to the Annual General Meeting (AGM) that a dividend of EUR 0.30 per share be distributed for the fiscal year 2012. The dividend would be paid to shareholders who on the record date of the dividend payment, April 26, 2013, are recorded in the shareholders’ register maintained by Euroclear Finland Ltd. or in the separate register of shareholders maintained by Euroclear Sweden AB for Euroclear Sweden registered shares. Dividends payable for Euroclear Sweden registered shares will be forwarded by Euroclear Sweden AB and paid in Swedish krona (SEK). Dividends payable to ADR holders will be forwarded by Deutsche Bank Trust Company Americas and paid in United States dollars (USD). The Board of Directors proposes to the AGM that the dividend be paid on May 15, 2013. Previously, a dividend of EUR 0.30 per share was reported for the fiscal year 2011. Full Article
Stora Enso Oyj Plans Restructuring and Profitability Improvement Actions
Stora Enso Oyj (Stora Enso) announced that it plans to restructure its operations through the permanent shutdown of two newspaper machines in Sweden. Stora Enso also plans efficiency improvements in the Printing and Reading customer service and the Building and Living Business Area. The profitability improvement actions are planned to reduce annual costs by EUR 54 million and reduce the number of employees by approximately 600 altogether. Printing and Reading plans the permanent shutdown of paper machine (PM) two at Hylte Mill in Sweden with annual capacity 205,000 tons of newsprint and PM 11 at Kvarnsveden Mill in Sweden with annual capacity 270,000 tons of newsprint in the second quarter of 2013. In addition, Stora Enso plans to create a common platform for all its Printing and Reading sales desk, order handling and logistic services in Europe to improve customer service. It also plans to establish a separate Logistics Service Center for overseas business in Gothenburg, Sweden, to serve all Stora Enso’s Business Areas. Building and Living plans to reduce costs, increase productivity and find sustainable improvement in all operations to overcome continued poor profitability. The plans announced include downsizing of Sollenau Sawmill in Austria, transfer of some production from the Pfarrkirchen Mill in Germany to the Zdirec Mill in the Czech Republic and efficiency improvement actions at Kitee and Honkalahti sawmills in Finland. Full Article
Stora Enso Oyj Comments on Q4 2012 Financial Guidance
Stora Enso Oyj announced that it will record non-recurring items (NRI) with a positive net impact of approximately EUR 110 million on operating profit, a positive impact of approximately EUR 11 million on financial items and a positive impact of approximately EUR 56 million on income tax in its fourth quarter of the fiscal year 2012 results. The NRI will increase earnings per share by EUR 0.22. Full Article
Stora Enso Oyj and Chalmers Enter Collaboration in Intelligent Pharmaceutical Packaging
Stora Enso Oyj announced that it has reached a co-operation agreement with Chalmers’ Encubator under which Stora Enso will act as a partner to Encubator. The focus of the collaboration is an innovation project developing intelligent pharmaceutical packaging. The idea comes from Stora Enso, and Encubator will run the business development together with Chalmers School of Entrepreneurship. The innovation project will develop intelligent pharmaceutical packaging to address the problem of poor adherence to prescription instructions by patients. Full Article
Stora Enso Oyj to Supply Wooden Modules for BoKlok Project at Kivisto in Vantaa in Finland
Stora Enso Oyj announced that it has agreed with Skanska on collaboration in which Stora Enso will supply wooden modular elements for a BoKlok project at Kivisto in Vantaa, Finland. BoKlok is a concept for moderately priced housing developed by Skanska and IKEA. At Kivisto in Vantaa, Finland, all 36 BoKlok apartments will be built of wooden modules supplied by Stora Enso's Hartola production unit. Preliminary marketing of the project will start at the beginning of 2013 and construction work will commence April 2013. The project, comprising seven small multi-storey buildings, will be ready for occupation just eight months after the start of construction work. Skanska and IKEA jointly developed the BoKlok concept in the mid-1990s. The first BoKlok homes were built in southern Sweden in 1997, and approximately 5,000 BoKlok homes have already been sold in Sweden. The BoKlok concept represents small-scale urban construction in small multi-storey buildings. The advantages of the concept include a shared sheltered yard, and scope for horticulture and a sauna shared by the housing in the yard. Owner-occupied BoKlok homes were recently built in Finland in 2006 in Porvoo and Vantaa. Full Article
Standard and Poor's Affirms Stora Enso Oyj's Ratings and Revises Outlook to Negative-Reuters
Reuters reported that Standard and Poor's Rating Services announced that it has revised Stora Enso Oyj's outlook to negative from stable and it has affirmed BB/B and K-4 ratings. Full Article
Stora Enso Oyj Signs Agreement To Establish Joint Venture Called Bulleh Shah Packaging (Private) Limited With Packages Ltd
Stora Enso Oyj announced has signed an agreement to establish a joint venture called Bulleh Shah Packaging (Private) Limited with Packages Ltd. of Pakistan. Stora Enso's initial shareholding will be 35% with a commitment to increase the shareholding at the agreed value to 50% at a later stage subject to certain conditions being met. The joint venture will include the operations of the Kasur mill and Karachi plant currently owned by Packages Ltd. The joint venture will to a large extent provide packaging products to key local and international customers in the fast-growing Pakistani market. The joint venture will employ about 950 people. The agreed value for 100% of the joint-venture company is approximately USD108 million (EUR83 million) on a cash and debt free basis. The total consideration can be up to USD125 million (EUR96 million), including an additional maximum performance compensation based on the financial results of the second half of 2012 and the first half of 2013. As part of the agreement, both parties are committed to a substantial USD135 million (EUR103 million) investment programme during 2013 and 2014 to develop the business further. The joint venture is EPS accretive and will over time after the new investments exceed Stora Enso's ROCE target of 13%. The joint-venture transaction is expected to be completed during the first quarter of 2013. Full Article
UPDATE 2-Paper firm Stora Enso cuts costs to combat demand drop
* Shares up 9 pct (Recasts with CEO and analyst comments, updates shares)
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