Stora Enso's NRI in second quarter 2014 have EUR 106 million negative impact including a cost for planned closure of Corbehem...
July 21 2014 - 6:06AM
Stora Enso will record non-recurring items (NRI) with a negative
net impact of approximately EUR 106 million on operating profit and
a positive impact of approximately EUR 1 million on income tax in
its second quarter 2014 results. The NRI will decrease earnings per
share by EUR 0.13.
Corbehem Millplanned
closure
The main item is a negative NRI in Printing and Reading of
approximately EUR 81 million due to the planned permanent closure
of the loss-making Corbehem Mill in France, including approximately
EUR 7 million of non-cash write-down. The cost of the planned
closure is based on the French legal requirements. Since October
2012, Stora Enso has been actively searching for a solid new owner
for Corbehem Mill offering a sustainable and long-term solution for
the site and its employees. Despite significant efforts involving
M&A and legal advisors and a dedicated project team, this
search proved unsuccessful. The total operational EBITDA of the
unit since the beginning of the process was a negative EUR 34
million. The mill has been at standstill since January 2014.
The employee representatives' information and consultation process
at the mill has now been completed. The social plan negotiated and
concluded with the trade unions was validated by the French labour
authorities on 10 June 2014. Under this social plan, Stora Enso
will offer support to Corbehem Mill employees to alleviate the
consequences of the redundancies related to the closure of the
mill.
Other non-recurring items
- a negative NRI in Printing and Reading of approximately EUR 34
million due to fixed asset impairments and inventory write-downs
related to the ongoing disposal of Uetersen Mill in Germany. The
transaction will be delayed from the original target of mid-July
due the regulatory approval process.
- a negative NRI in the segment Other of approximately EUR 9
million due to termination of an agreement in logistics
operations.
- a positive NRI in the segment Other of approximately EUR 18
million due to land swap arrangements in the Group's equity
accounted investment Bergvik Skog.
Allocation of NRI* between segments
Segment |
EUR million |
Printing and Reading |
-115 |
Biomaterials |
- |
Building and Living |
- |
Renewable Packaging |
- |
Other |
9 |
Operating Profit |
-106 |
Income tax |
1 |
Net Profit |
-105 |
*NRI = Non-recurring items. These are exceptional transactions
that are not related to normal business operations. The most common
non-recurring items are capital gains, additional write-downs, or
reversals of write-downs, provisions for planned restructuring and
penalties. Non-recurring items are normally disclosed individually
if they exceed one cent per share. For further information,
please contact: Seppo Parvi, CFO, tel. +358 2046 21205
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242
www.storaenso.com www.storaenso.com/investors 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 29 000 people worldwide, and our
sales in 2013 amounted to EUR 10.6 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. STORA
ENSO OYJ
Stora Enso (QX) (USOTC:SEOAY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Stora Enso (QX) (USOTC:SEOAY)
Historical Stock Chart
From Jul 2023 to Jul 2024