2.2.2006: Meldung: Stora Enso Oyi: Fourth Quarter and Full Year Results 2005
Proposed dividend unchanged at EUR 0.45 per share
Stora Enso Oyj Stock Exchange Release 2 February 2006 at 10:00 GMT
Fourth Quarter Results
Stora Enso"s earnings per share were EUR 0.13 (EUR 0.08) excluding non-recurring items. Operating profit excluding non-recurring items rose by 13.8% to EUR 120.9 (EUR 106.2) million, which is 3.3% of sales. Profit before tax amounted to EUR 96.4 (EUR 93.0) million excluding non-recurring items. There were several non-recurring items in the fourth quarter related to the previously announced Profit 2007 and Asset Performance Review (APR) programmes. The non-recurring items totalled EUR -439.4 million, comprising EUR -285.8 million of write-downs, EUR -18.7 million of restructuring charges with immediate cash impact and EUR -134.9 million of provisions, mainly related to redundancies, which will have a cash impact mostly during 2006.
Sales at EUR 3 636.1 million were 13.0% higher than the previous quarter"s EUR 3 219.2 million. Cash flow from operations was EUR 169.7 (EUR 349.9) million and cash flow after investing activities EUR -109.7 (EUR 93.6) million. Cash earnings per share were EUR 0.50 (EUR 0.44) excluding non-recurring items.
EUR million 2004 2005 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05
12 13 3 3 3 3
Sales 395.8 187.5 241.9 144.9 187.3 219.2 3 636.1
EBITDA1)2) 1 508.4 1 487.4 332.7 388.8 298.4 388.6 411.6
Operating profit2)4) 426.7 357.5 66.9 112.7 17.7 106.2 120.9
Non-recurring items 369.7 -451.4 179.9 - -12.0 - -439.4
% 3.4 2.7 2.1 3.6 0.6 3.3 3.3
Operating profit4) 796.4 -93.9 246.8 112.7 5.7 106.2 -318.5
Profit before tax and
interests2)4) 359.6 273.1 48.7 83.6 0.1 93.0 96.4
Profit before tax and
minority interests4) 729.3 -178.3 228.6 83.6 -11.9 93.0 -343.0
Net profit for the
period4) 838.1 -126.3 174.4 60.0 -8.6 66.5 -244.2
EPS2), Basic, EUR 0.25 0.28 0.03 0.07 0.00 0.08 0.13
EPS, Basic, EUR 0.89 -0.16 0.18 0.07 -0.01 0.08 -0.31
CEPS2)3), EUR 1.67 1.70 0.38 0.41 0.35 0.44 0.50
ROCE2), % 3.0 3.1 1.6 4.1 0.6 3.7 4.1
1) EBITDA = Earnings before Interest, Taxes, Depreciation and Amortisation
2) Excluding net non-recurring items. Exceptional transactions that are not related to normal business operations are accounted for as non-recurring items. The most common non-recurring items are capital gains, additional write-downs, restructuring provisions and penalties. Non-recurring items are normally specified individually if they exceed one cent per share.
3) CEPS = (Net profit for the period + depreciation and amortisation)/average number of shares 4) The comparative figures exclude goodwill amortisation of EUR 90.3 million for 2004 and EUR 24 million for Q4/2004 Full year results Full year sales increased by EUR 791.7 million to EUR 13 187.5 million, an increase of 6.4%. Operating profit, excluding non-recurring items, decreased by EUR 69.2 million to EUR 357.5 million. Earnings per share excluding non-recurring items increased by EUR 0.03 to EUR 0.28. Cash earnings per share were EUR 1.70 (EUR 1.67) excluding non-recurring items.
Cash flow from operations was EUR 1 057.0 (EUR 1 200.1) million and cash flow after investing activities EUR -88.3 (EUR 220.5) million.
Commenting on the outlook, Stora Enso"s CEO Jukka Härmälä said, "In Europe a slight pick-up in advertising and direct marketing is expected to stimulate demand for advertising-driven papers. Demand for newsprint and magazine paper is good and forecast to grow moderately in 2006, with demand for SC paper in particular recovering following a weak 2005. Prices are expected to rise as a result of the year-end contract negotiations. The fine paper market is heading into a seasonally good first quarter and the demand outlook is favourable, which should support some price increases. In packaging board order books are good in most grades and demand is expected to remain firm with some price improvements. Demand for wood products is steady, but continuing oversupply in Europe is keeping the market challenging."
In North America print advertising is forecast to remain healthy. However, increases in postal rates may have some negative impact on the growth in magazine and catalogue markets, and only modest demand growth is anticipated in magazine and coated fine paper. A further decline in newsprint demand is predicted. Prices are expected to remain firm in magazine and coated fine paper, and to improve in newsprint.
In Asia demand for coated fine paper is slowing following the normal seasonal pattern. At Port Hawkesbury Mill in Canada labour negotiations have been ongoing for over 20 months. The machines have been at a standstill since 24 December 2005.As the negotiating parties could not reach an agreement, a lockout was declared on 26 January 2006.
Stora Enso"s first quarter results for 2006 will be published on 26 April 2006.
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.
Stora Enso is an integrated paper, packaging, and forest products company, producing publication and fine paper, packaging board, and wood products - all areas in which the Group is a global market leader. Stora Enso"s sales totalled EUR 13.2 billion in 2005. The Group has some 46 000 employees in more than 40 countries on five continents. Stora Enso has an annual production capacity of 16.9 million tonnes of paper and board and 7.7 million cubic metres of sawn wood products, including 3.3 million cubic metres of value-added products. Stora Enso"s shares are listed in Helsinki, Stockholm, and New York.
Stora Enso Oyj