Stora Enso’s non-recurring items in 1Q 2012

April 5, 2012 by timbercommunity

Stora Enso will record non-recurring items (NRI) with a negative impact of approximately EUR 25 million on operating profit and a positive impact of approximately EUR 14 million on financial items in its first quarter 2012 results. The NRI will have a positive tax impact of EUR 5 million and a negative future cash impact of EUR 23 million.

The NRI are:
NRI with approximately EUR 14 million positive impact on financial items due to reversal of a provision relating to the NewPage Stevens Point Mill paper machine lease Stora Enso recorded in the third quarter of 2011.
NRI with approximately EUR 10 million negative impact on operating profit due to plans to streamline Swedish maintenance operations, as announced on 8 February 2012. The restructuring measures would reduce annual costs by approximately EUR 21 million, starting gradually from late 2012 onwards.
NRI with approximately EUR 6 million negative impact on operating profit due to plans to restructure coated magazine paper operations in the Printing and Reading Business Area, as announced on 8 February 2012. The restructuring measures would reduce annual costs by approximately EUR 48 million, with the full impact achieved from the third quarter of 2013 onwards.
NRI with approximately EUR 9 million negative impact on operating profit due to Renewable Packaging Business Area restructuring plans, including the plans announced in a separate release today. Renewable Packaging would reduce annual costs by approximately EUR 7 million, starting gradually from the fourth quarter of 2012 onwards.