Stora Enso Fourth Quarter and Full Year Results 2012

Stora Enso Fourth Quarter and Full Year Results 2012

Strong Cash Flow, Deteriorating Paper Markets, Proposed Dividend EUR 0.30

HELSINKI, Finland, Feb. 5, 2013 (GLOBE NEWSWIRE) --

Q4 2012 (compared with Q4 2011)

  *Operational EBIT EUR 10 million higher than in Q4 2011 at EUR 155 (EUR
    145) million mainly due to lower costs, EUR 20 million lower than in Q3
    2012 (EUR 175) million driven by seasonally higher fixed costs.
  *Strong cash flow from operations at EUR 471(EUR 302) million and strong
    liquidity at EUR 1 845 (EUR 1 134) million.
  *Operational ROCE 7.1% (6.7%).

Full Year 2012 (compared with 2011)

  *Operational EBIT EUR 248 million lower than in 2011 at EUR 618 (EUR 867)
    million mainly due to lower sales prices.
  *Improved cash flow from operations at EUR 1 253 (EUR 1 034) million.
  *Ratio of net debt to the last twelve months' operational EBITDA 2.5 (2.1).

Outlook and actions

  *Q1 2013 sales expected to be at roughly similar level but operational EBIT
    in the order of magnitude one-third lower than in Q4 2012 due to
    deterioration in European paper and Building and Living markets.
  *Skoghall and Ostrołęka investments started up as planned.
  *Restructuring plans including 475 000 tonnes of newsprint capacity
    reduction and annual cost savings of EUR 54 million announced.

Summary of Fourth Quarter Results

                                      Q4/12   2012     Q4/11   2011
Sales                       EUR million 2 727.0 10 814.8 2 681.6 10 964.9
Operational EBITDA          EUR million 272.8   1 082.6  242.9   1 308.0
Operational EBIT*           EUR million 155.0   618.3    144.9   866.7
Operating profit (IFRS)     EUR million 251.1   689.0    169.5   759.3
Profit before tax excl. NRI EUR million 83.5    318.5    141.4   639.1
Profit before tax           EUR million 203.7   481.7    110.3   420.9
Net profit excl. NRI        EUR million 88.9    263.9    80.5    498.2
Net profit                  EUR million 265.5   490.4    100.2   342.2
EPS excl. NRI               EUR         0.11    0.33     0.10    0.63
EPS                         EUR         0.33    0.61     0.12    0.43
CEPS excl. NRI              EUR         0.30    1.07     0.28    1.33
Operational ROCE            %           7.1     7.1      6.7     10.0

*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, CO[2] emission rights and valuations of biological
assets related to forest assets in EAI.

Near-term Outlook

In the first quarter of 2013 Group sales are expected to be at roughly similar
level but operational EBIT in the order of magnitude one-third lower than in
the fourth quarter of 2012 due to deterioration in European paper and Building
and Living markets.The impact of the restructuring plans announced today
would start to have an impact on the Group's results from the second half of
2013 onwards. In Biomaterials, Veracel Pulp Mill will take its annual
maintenance stoppage during the quarter.
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 first quarter 2013 results will be published on 23 April 2013 at
13.00 EET.
Annual General Meeting on 23 April 2013 at 16.00 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