Stora Enso will record non-recurring items (NRI) with a negative impact of approximately EUR 42 million on operating profit, including a EUR 20 million future cash impact, in its fourth quarter 2009 results. The NRIs will have a beneficial impact of approximately EUR 12 million on tax. The impact of the NRIs on earnings per share will be negative EUR 0.04.
The NRIs are:
- negative NRI of EUR 30 million related to the penalty imposed by the Finnish Market Court for collaboration and exchange of information with other forest products companies concerning prices for purchasing roundwood in Finland from 1997 to 2004 as announced on 3 December 2009;
- impairment charge of approximately EUR 26 million in the Magazine Paper segment related to fixed asset impairment testing undertaken during the fourth quarter of 2009;
- negative NRI of approximately EUR 15 million related to permanent impairment of certain Pohjolan Voima's (PVO) subsidiary shares;
- positive NRI of approximately EUR 19 million related to the disposal of Stora Enso Uruguay S.A upon the creation of Montes del Plata joint venture between Stora Enso and Arauco and Stora Enso's share of negative goodwill recognised in connection with the joint acquisition of Grupo ENCE's assets in Uruguay. The
amount is subject to finalisation of the fair valuation process;
- positive NRI of approximately EUR 10 million of restructuring provision
released following the decision to restart production at Sunila Pulp Mill, as announced on 30 November 2009.
Stora Enso's annual depreciation will be about EUR 500 million after these impairment charges.
