Business News
Stora Enso Interim Review January-June 2009
Thursday 23. July 2009 - Clear sequential improvement in operating profit; third consecutive quarter of solid cash flow from operations - early cost cuts pay off
EUR 49 million operating profit excluding NRI and fair valuations through EUR 276 million (13 margin point) year-on-year reduction mostly in fixed and fibre costs
EUR 189 million cash flow from operations through third consecutive quarter of working capital and net debt reductions
EUR 418 million non-cash write-down due to refinancing of NewPage jointly with Cerberus; 19.9% shareholding in NewPage maintained
Continuing losses in Finland with structural external cost issues, further capacity cuts necessary
Summary of Second Quarter Results
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| Continuing Operations | | Q2/09 | Q1/09 | Q2/08 |
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| Sales | EUR | 2 184.8 | 2 130.5 | 2 871.8 |
| | million | | | |
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| EBITDA excl. NRI and fair | EUR | 190.4 | 134.3 | 262.6 |
| valuations | million | | | |
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| Operating Profit excl. NRI | EUR | 48.5 | 3.0 | 94.4 |
| and Fair Valuations | million | | | |
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| Operating loss/profit (IFRS) | EUR | -209.4 | -0.9 | 71.3 |
| | million | | | |
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| Profit/loss before tax excl. | EUR | 47.2 | -82.1 | 31.7 |
| NRI | million | | | |
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| Loss/profit before tax | EUR | -370.6 | -48.1 | 30.4 |
| | million | | | |
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| Net profit/loss excl. NRI | EUR | 44.9 | -60.2 | 27.5 |
| | million | | | |
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| Net loss/profit | EUR | -368.3 | -36.1 | 28.6 |
| | million | | | |
——————————————————————————–
| EPS excl. NRI | EUR | 0.06 | -0.08 | 0.04 |
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| EPS | EUR | -0.46 | -0.05 | 0.04 |
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| CEPS excl. NRI | EUR | 0.24 | 0.10 | 0.26 |
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| ROCE excl. NRI | % | 2.8 | -1.6 | 2.8 |
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| ROCE excl. NRI and fair | % | 2.3 | 0.1 | 3.6 |
| valuations | | | | |
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Fair valuations include synthetic options net of realised and open hedges, CO2 emission rights, and valuations of biological assets mainly related to associated companies’ forest assets.
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, provisions for planned restructuring and penalties. Non-recurring items are normally specified individually if they exceed one cent per share.
Message from CEO Jouko Karvinen:
“Three months ago we expected the second quarter of 2009 to be a repetition of the extraordinarily difficult first quarter. We were unfortunately right about the demand remaining weak. Our continued push for pricing quality, including heavy curtailments, paid off with a slightly positive year-on-year development in paper and board pricing, however combined with materially lower pricing of wood products and market pulp.
“What is important as well is that our cost improvement actions in the past two years are now paying off. The overall costs went down by about EUR 280 million (13 margin points) year on year in the second quarter, mostly through a EUR 109 million year-on-year improvement in quarterly fixed costs and EUR 83 million lower fibre costs. A material part of the latter is due to our actions in curtailing the high cost Finnish asset base and directing the limited volumes to our lowest cost assets.
“With all these actions, and in spite of a 17% year-on-year volume reduction, our second quarter operating profit excluding NRI and fair valuations at EUR 49 million was clearly better than the EUR 3 million in the first quarter, although still unacceptably poor. Also, the cash flow from operations at EUR 189 million and cash flow after investments at EUR 81 million remained solid for a third quarter in a row. This led to another quarter of net debt reduction in an unprecedentedly difficult demand environment.
“The refinancing plan for NewPage, undertaken jointly with Cerberus, turned the second quarter operating profit including NRI into an operating loss, with no cash impact. At the same time, if anything this proves that our early decision two years ago to disengage ourselves from our North American operations was correct as we now can, and will, continue optimising our present asset base further and review strategic growth options.
“We foresee that demand will continue to be weak during the third quarter of 2009. Our lower cost level will help us to defend our earnings against price pressure in certain paper grades. Our Next Step programme announced in April to streamline the organisation and cut overhead costs by a further EUR 250 million is progressing on time and cost targets. However, the completed and announced actions are still not enough to solve the external cost issues that have made some of our assets unprofitable, especially in Finland. For three consecutive quarters, the profit the Group has made outside Finland has been to a large extent or even completely lost in Finland. We are therefore preparing plans for not only continuing curtailments, but also permanent capacity closures in areas where we cannot see a rapid recovery to clearly positive returns. The specific plans, once finalised will be announced separately during the third quarter of 2009.
“We have not waited for better times, but instead acted, and that has proved to have been absolutely the right thing to do. We will never say we are ready, we have done everything – on the contrary, now we want to move even faster.”
Near-term Outlook
The market environment for the Group’s products is expected to stay challenging as no immediate improvement in the economic outlook can be seen. Forecasts for advertising expenditure have been further revised downwards as a declining share of GDP is spent on advertising, and printed advertisements are still losing market share in total advertising expenditure.
Though the pace of contraction is slowing, demand is forecast to remain weaker than a year ago for newsprint, magazine paper and fine paper in the third quarter of 2009. However, some seasonal improvement in the newsprint and magazine paper market in the third quarter is predicted compared with the previous quarter. Demand for liquid packaging board is forecast to remain the same as last year, but demand for other packaging products is expected to be weaker. The demand outlook for wood products remains weak due to depressed construction markets throughout Europe, Japan and USA.
In Europe some graphic paper grades are exposed to price pressure. Prices for consumer board and industrial packaging products are forecast to remain largely unchanged. Production curtailments have led to an improved balance between supply and demand in wood products. Some wood product prices are expected to increase.
In China the economy is recovering and demand for uncoated magazine paper is predicted to be stronger than a year ago. Prices for uncoated magazine paper are expected to stabilise. Market demand for coated fine paper is forecast to improve further and prices to maintain their slow improvement. In Latin America a seasonal improvement in coated magazine paper demand is anticipated in the autumn. Prices are expected to stabilise.
Stora Enso continues to forecast that its cost deflation excluding internal actions will be at about 4% for the full year 2009, the main contributor being the lower costs of fibre raw material (wood, recycled paper and purchased pulp).
Markets
Compared with Q2/2008
In Europe market demand for all the Group’s products was significantly weaker. Market prices in local currencies were higher for newsprint in Europe, magazine paper, coated fine paper and consumer board, somewhat lower for uncoated fine paper and industrial packaging, and clearly lower for newsprint in overseas markets and wood products. Producer inventories were clearly lower in wood products and slightly lower in newsprint, magazine paper and fine paper.
In Latin America market demand and prices for coated magazine paper were lower.
In China market demand was clearly weaker for uncoated magazine paper and unchanged for coated fine paper. Prices for both grades were lower.
Compared with Q1/2009
In Europe market demand continued to weaken for publication papers and coated fine paper, remained fairly stable for uncoated fine paper and recovered slightly for consumer board, industrial packaging and wood products, mainly due to seasonal factors. Market prices in local currencies increased somewhat for newsprint, remained largely unchanged for uncoated magazine paper, coated fine paper, consumer board and some industrial packaging products, and decreased for coated magazine paper, uncoated fine paper, SC fluting, coreboard and cores. Production curtailments have clearly improved the supply and demand balance in wood products, supporting price increases albeit from the very low levels. Producer inventories increased to some extent in magazine paper and coated fine paper, were unchanged in uncoated fine paper and decreased in newsprint and wood products.
In Latin America market demand for coated magazine paper improved and prices remained stable.
In China demand for uncoated magazine paper and coated fine paper started to recover. Prices declined for uncoated magazine paper and rose for coated fine paper.
Stora Enso Deliveries and Production
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| | Q2/0 | Q1/ | Q2/ | 2008 | Q1-Q | Q1-Q | Chan | Chan | Chan |
| | 9 | 09 | 08 | | 2/09 | 2/08 | ge % | ge % | ge % |
| | | | | | | | Q2/0 | Q2/0 | Q1-Q |
| | | | | | | | 9-Q2 | 9-Q1 | 2/09 |
| | | | | | | | /08 | /09 | – |
| | | | | | | | | | Q1-Q |
| | | | | | | | | | 2/08 |
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| Paper and board | 2 | 2 | 2 | 11 | 4 | 6 | -16. | 6.7 | -19. |
| deliveries (1 | 500 | 343 | 993 | 836 | 843 | 019 | 5 | | 5 |
| 000 tonnes) | | | | | | | | | |
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| Paper and board | 2 | 2 | 2 | 11 | 4 | 6 | -17. | 4.1 | -20. |
| production (1 | 460 | 363 | 966 | 746 | 823 | 028 | 1 | | 0 |
| 000 tonnes) | | | | | | | | | |
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| Wood products | 1 | 1 | 1 | 5 | 2 | 3 | -16. | 16.9 | -20. |
| deliveries (1 | 301 | 113 | 563 | 893 | 414 | 030 | 8 | | 3 |
| 000 m3) | | | | | | | | | |
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| Corrugated | 238 | 228 | 279 | 1 | 466 | 546 | -14. | 4.4 | -14. |
| packaging | | | | 071 | | | 7 | | 7 |
| deliveries | | | | | | | | | |
| (million m2) | | | | | | | | | |
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Mill closures and restructurings reduced comparative deliveries as follows for the period Q1-Q2/09 compared with Q1-Q2/08: Summa Mill closure in January 2008 by some 39 000 tonnes of newsprint and 8 000 tonnes of magazine paper; Anjala Mill restructuring in the first quarter of 2008 by some 24 000 tonnes of magazine paper; Baienfurt Mill closure in December 2008 by some 72 000 tonnes of cartonboard.
Q2/2009 Results (compared with Q2/2008)
Sales at EUR 2 184.8 million were EUR 687.0 million less than in the second quarter of 2008. Deliveries were lower in all segments. Prices in local currencies increased in Newsprint, Magazine Paper and Consumer Board, but decreased in Fine Paper and Wood Products.
Q2/2009 Results (compared with Q2/2008) (continued)
Operating profit excluding non-recurring items and fair valuations decreased by EUR 45.9 million to EUR 48.5 million. Operating profit increased by EUR 18.6 million in Consumer Board and improved slightly in Newsprint and Wood Products, but deteriorated by EUR 23.8 million in Fine Paper, by EUR 19.2 million in Industrial Packaging and by EUR 8.8 million in Magazine Paper. There was an operating loss of EUR 8.7 (EUR 10.9) million in Wood Products and an operating loss of EUR 4.1 million (operating profit EUR 19.7 million) in Fine Paper. In the segment Other there was an operating loss excluding non-recurring items and fair valuations of EUR 24.3 (EUR 8.2) million.
In the second quarter of 2009, the Group curtailed paper and board production by 20%, pulp production by 28% and sawnwood production by 31% of capacity.
Higher sales prices in local currencies increased the operating profit of the paper and board segments by EUR 2 million, excluding the effects of mill closures. Lower sales prices had a negative impact of EUR 39 million on the Wood Products operating profit figure, resulting in an operating loss. Lower sales volumes reduced operating profit by EUR 182 million.
Lower woods costs increased Group operating profit by approximately EUR 44 million. Deliveries of wood to the Group’s mills were 26% less than a year earlier at 7.1 million cubic metres. Fixed costs decreased by EUR 109 million, mainly due to cost improvement actions, including restructuring.
The share of associated company operational results, excluding non-recurring items and fair valuations, amounted to EUR 6.3 (EUR 8.3) million. Operating profit includes a net effect of EUR 11.4 (EUR -21.8) million for fair valuations related to the accounting of share-based compensation, Total Return Swaps (TRS), CO2 emission rights and IAS 41 forest valuations mainly related to associated companies.
Stora Enso has recorded a write-down of EUR 417.8 (USD 575) million related to its 19.9% NewPage shareholding and vendor note as a non-recurring item in its second quarter 2009 results due to the poor prospects of an upturn in the market and actions taken to reorganise NewPage’s capital structure by its largest shareholder, Cerberus Capital Management, L.P. An adjustment to the write-down may be recorded in the third quarter of 2009 when the capital structure reorganisation is completed. The write-down of the shares had a negative impact of EUR 269.3 million on operating profit and the write-down of the vendor note a negative impact of EUR 148.5 million on financial items.
Net financial items were EUR -161.2 (EUR -40.9) million. Net interest expenses decreased from EUR 40.9 million to EUR 22.8 million, mainly due to lower interest rates. The Group has an interest rate risk policy of synchronising interest costs with earnings over the business cycle by swapping long-term fixed interest rates to short-term floating interest rates. Net foreign exchange gains on borrowings, currency derivatives and bank accounts amounted to EUR 12.6 (EUR 4.2) million, mainly due to euro-denominated loans in Russia. The net loss from other financial items amounted to EUR -151.0 (EUR -4.2) million, including EUR -148.5 million due to the impairment of the NewPage vendor note as described above. The remaining loss of EUR -2.5 million comprises EUR 5.2 million from payment-in-kind notes, EUR -8.0 million of fair valuation losses on interest rate swaps, EUR 1.3 million of fair valuation gains on long-term debt and EUR -1.0 million of other expenses.
Group capital employed was EUR 8 493.4 million on 30 June 2009, a net decrease of EUR 2 262.7 million due to restructuring of the Group, fixed asset and goodwill impairments, fair valuations of unlisted shares in Pohjolan Voima and NewPage, and decreased working capital.
January-June 2009 Results (compared with the same period in 2008)
Sales at EUR 4 315.3 million were EUR 1 388.3 million lower than the EUR 5 703.6 million a year earlier due to lower deliveries.
Operating profit excluding non-recurring items and fair valuations decreased by
EUR 183.0 million to EUR 51.5 million as lower sales volumes and higher energy costs more than offset the positive impact of fixed and fibre costs.
Q2/2009 Results (compared with Q1/2009)
Sales at EUR 2 184.8 million were EUR 54.3 million higher than the previous quarter’s EUR 2 130.5 million. Operating profit excluding non-recurring items and fair valuations increased by EUR 45.5 million to EUR 48.5 million as cost reductions in many areas, especially energy and wood costs, and some increases in deliveries more than offset lower sales prices in local currencies. Group capital employed was EUR 8 493.4 million on 30 June 2009, a net increase of EUR 101.2 million.
Capital Structure
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| EUR million | 30 Jun | 31 Mar 09 | 31 Dec 08 | 30 Jun 08 |
| | 09 | | | |
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| Operative fixed assets | 6 593.7 | 6 648.8 | 6 853.7 | 8 572.8 |
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| Associated companies | 1 117.9 | 1 063.5 | 1 042.5 | 1 213.7 |
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| Operative working capital | 1 540.6 | 1 435.4 | 1 674.7 | 1 921.3 |
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| Non-current interest-free | – 482.6 | – 491.1 | – 513.6 | – 414.0 |
| items, net | | | | |
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| Operating Capital Total | 8 769.6 | 8 656.6 | 9 057.3 | 11 293.8 |
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| Net tax liabilities | -276.2 | -264.4 | -282.8 | -537.7 |
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| Capital Employed | 8 493.4 | 8 392.2 | 8 774.5 | 10 756.1 |
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| Equity attributable to | 5 518.8 | 5 382.3 | 5 594.0 | 7 782.5 |
| Company shareholders | | | | |
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| Non-controlling interests | 57.0 | 57.3 | 56.5 | 74.8 |
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| Net interest-bearing | 2 917.6 | 2 952.6 | 3 124.0 | 2 898.8 |
| liabilities | | | | |
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| Financing Total | 8 493.4 | 8 392.2 | 8 774.5 | 10 756.1 |
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Financing Q2/2009 (compared with Q1/2009)
Cash flow was EUR 189.3 (EUR 263.6) million and cash flow after investing activities EUR 81.0 (EUR 159.4) million. Despite poor profitability, the cash flow was solid due to effective working capital management, especially of inventories, and disciplined capital expenditure. At the end of the period, net interest-bearing liabilities of the Group were EUR 2 917.6 million, virtually unchanged from the first quarter of 2009.
Total unutilised committed credit facilities remained unchanged at EUR 1 400 million, and cash and cash-equivalents net of overdrafts increased from EUR 489 million to EUR 645 million. In addition, Stora Enso has access to various long-term sources of funding totalling EUR 700 million. On 14 May 2009 Stora Enso announced that it had successfully increased its EUR 517 555 000 5.125% June 2014 notes by EUR 232 445 000, bringing the total transaction size to EUR 750 000 000. The new notes were issued with a 12.25% yield and were priced at 74.099. The cash received totalled EUR 181 million.
The debt/equity ratio at 30 June 2009 was 0.53 (0.55). The currency effect on equity was positive EUR 88 million net of the hedging of equity translation risks. The fair valuation of unlisted equity and debt instruments, mainly related to NewPage and Pohjolan Voima, included within available-for-sale assets increased equity by EUR 413 million.
Financing Q2/2009 (compared with Q2/2008)
At the end of the second quarter of 2009 Stora Enso had current borrowings of EUR 1 449.7 million compared with EUR 819.9 million at the end of the second quarter of 2008. Cash and cash equivalents at the end of the second quarter of 2009 amounted to EUR 645 million, compared with EUR 475 million at the end of the second quarter of 2008.
Capital Expenditure for January-June 2009
The target capital expenditure for the Group for the full year 2009 is EUR 400 million. Capital expenditure for the first half of 2009 totalled EUR 212.5 million including land acquisitions, which is 78% of depreciation for the first half of 2009.
The main projects during the first half of 2009 were power plants and energy-related projects at existing mills (EUR 85 million), development of existing production (EUR 34 million) and plantations in South America and China (EUR 23 million).
2009 Impairment Testing
Even though the second quarter results were an improvement on the first quarter of 2009, the Group does not expect demand to improve materially and therefore has decided to bring forward the 2009 impairment testing in order to report any resulting impairment charges earlier than in previous years. The Group will report the results of the impairment testing during the third quarter if there are significant charges.
Short-term Risks and Uncertainties
The main short-term risks and uncertainties are related to further deterioration of the global economy, especially the European economy. Sudden sharp increases in wood prices would also have a negative impact on the Group.
Energy sensitivity analysis for 2009: the direct effect on 2009 operating profit of a 10% change in electricity and oil market prices would be about EUR 18 million annual impact, after the effect of hedges.
Wood sensitivity analysis for 2009: the direct effect on 2009 operating profit of a 10% change in wood prices would be about EUR 160 million annual impact.
Near-term Outlook
The market environment for the Group’s products is expected to stay challenging as no immediate improvement in the economic outlook can be seen. Forecasts for advertising expenditure have been further revised downwards as a declining share of GDP is spent on advertising, and printed advertisements are still losing market share in total advertising expenditure.
Though the pace of contraction is slowing, demand is forecast to remain weaker than a year ago for newsprint, magazine paper and fine paper in the third quarter of 2009. However, some seasonal improvement in the newsprint and magazine paper market in the third quarter is predicted compared with the previous quarter. Demand for liquid packaging board is forecast to remain the same as last year, but demand for other packaging products is expected to be weaker. The demand outlook for wood products remains weak due to depressed construction markets throughout Europe, Japan and USA.
In Europe some graphic paper grades are exposed to price pressure. Prices for consumer board and industrial packaging products are forecast to remain largely unchanged. Production curtailments have led to an improved balance between supply and demand in wood products. Some wood product prices are expected to increase.
In China the economy is recovering and demand for uncoated magazine paper is predicted to be stronger than a year ago. Prices for uncoated magazine paper are expected to stabilise. Market demand for coated fine paper is forecast to improve further and prices to maintain their slow improvement. In Latin America a seasonal improvement in coated magazine paper demand is anticipated in the autumn. Prices are expected to stabilise.
Stora Enso continues to forecast that its cost deflation excluding internal actions will be at about 4% for the full year 2009, the main contributor being the lower costs of fibre raw material (wood, recycled paper and purchased pulp).
Second Quarter Events
April
On 23 April 2009 Stora Enso announced that it was starting co-determination negotiations in Finland with the aim of reducing capacity at Kitee and Varkaus sawmills and restructuring Puumerkki operations in Finland and Latvia. Following the co-determination negotiations, which ended in mid June, the number of employees is being reduced by 35 and annual capacity by a total of 120 000 cubic metres.
On 23 April 2009 Stora Enso also announced that it would acquire Myllykoski Paper’s remaining 49% minority shareholding in Sunila Oy in Finland for EUR 6 million. On 15 May 2009 Stora Enso announced that it had finalised the acquisition after receiving all the necessary approvals from the competition authorities.
On 23 April 2009 Stora Enso also announced that it planned to reorganise its operations with the aim of reducing annual costs by EUR 250 million, the majority of the reduction to be achieved during 2009 and the remainder by the end of 2010. Up to 2 000 employees would be affected, mainly as a result of the leaner management structures. The final outcome would depend on the result of the co-determination procedures.
May
On 18 May 2009 Stora Enso announced that Stora Enso and Arauco, one of the largest forest industry enterprises in Latin America based in Chile, had signed a definitive purchase agreement with the Spanish pulp producer Grupo ENCE for the joint acquisition on a 50/50 basis of approximately 130 000 hectares of owned land and plantations, 6 000 hectares of leased lands and other operations owned by Grupo ENCE in the central and western areas of Uruguay. The enterprise value of the transaction is USD 344 (EUR 253) million, including USD 33 million of assumed debt. Stora Enso’s share of the enterprise value is 50%. The transaction with Grupo ENCE is expected to close by the end of 2009. Stora Enso and Arauco intend to combine their existing assets in Uruguay with the newly acquired operations.
On 20 May 2009 Stora Enso announced that it had appointed Ulla Paajanen-Sainio as the new Head of Investor Relations with immediate effect. She succeeded Keith B Russell, SVP, Investor Relations, who had headed the function from the Group’s London office and left Stora Enso at the end of May 2009. She is based in Helsinki and reports to CFO Markus Rauramo.
June
On 11 June 2009 Stora Enso and Neste Oil inaugurated the demonstration plant at Varkaus for biomass to liquids (BtL) production utilising forestry residues. A 50/50 joint venture, NSE Biofuels Oy, has been established first to develop technology and later to produce at commercial scale biocrude for renewable diesel.
Restructuring Actions
On 23 April 2009 Stora Enso announced that it was reorganising its operations with the aim of reducing annual fixed costs by EUR 250 million, mainly through savings in administration. The reorganisation is progressing on schedule to reach the targeted savings. The number of employees affected will depend on the outcome of the co-determination procedures, the majority of which are planned to be concluded during 2009. The new cost-reduction programme incorporates the earlier focused administration project and the restructuring of financial administration that started in 2007.
Veracel
On 11 July 2008 Stora Enso announced that a federal judge in Brazil had claimed in a judgement that the permits issued by the State of Bahia to Stora Enso’s associated company Veracel were not valid. The judge also decreed remedial actions, including reforestation with native trees on part of Veracel’s plantation land and a possible BRL 20 million (EUR 8 million) fine. Veracel vigorously disputes the findings of the court and has taken legal action against the judgement. Veracel operates in full compliance with all Brazilian laws, has undertaken an extensive environmental impact assessment study and has obtained all the necessary environmental and operating licences for its industrial and forestry activities. In November 2008, the Federal Court of the municipality of Eunápolis, Bahia, suspended the effects of the decision as an interim measure. Veracel has not recorded any provision for the reforestation or the possible fine.
Inspections by Competition Authorities
In 2007, following US Federal District Court trial, Stora Enso was found not guilty of charges by the US Department of Justice relating to practices in the sale of coated magazine paper in the USA in 2002 and 2003. Coincident with this case, Stora Enso has been named in a number of class action lawsuits filed in the USA which still are pending.
The Finnish Competition Authority has investigated wood purchase practices in Finland. The Authority has proposed to the Finnish Market Court that a fine of EUR 30 million be imposed on Stora Enso for violating competition laws in purchasing practices during the period from 1997 to 2004. The Market Court is handling the case and its decision is expected by the end of 2009. Stora Enso considers the Competition Authority’s proposal groundless.
No provisions have been made in Stora Enso’s accounts for the above-mentioned lawsuits and investigation.
Share Capital
During the quarter, the conversion of 347 A shares into R shares was recorded in the Finnish Trade Register on 12 June 2009.
On 30 June 2009 Stora Enso had 177 152 084 A shares and 612 386 415 R shares in issue of which the Company held no A shares and 918 512 R shares with a nominal value of EUR 1.6 million. The holding represents 0.12% of the Company’s share capital and 0.04% of the voting rights.
Changes in shareholdings
In April the number of shares in Stora Enso Oyj held by Norges Bank (Central Bank of Norway) increased above 5% of the of the paid-up share capital and the number of shares in Stora Enso Oyj.
In May the number of shares in Stora Enso Oyj held by the funds managed by Orbis Investment Management Limited, Orbis Asset Management Limited and Orbis Portfolio Management (Europe) LLP decreased below 5% of the paid-up share capital and the number of shares in Stora Enso Oyj.
Events after the Period
On 3 July 2009 Stora Enso undertook a partial buyback of the 2009 3.875% Swedish Medium-Term Note. The nominal value bought back amounted to SEK 867.2 (EUR 80) million and the cash amount paid was SEK 892.4 (EUR 82.6) million, of which SEK 18.5 (EUR 1.7) million related to interest. A loss of SEK 6.7 (EUR 0.6) million will be recorded in the third quarter of 2009.
On 22 July 2009 Stora Enso announced that the Finnish National Board of Patents and Registration had confirmed that Stora Enso could decrease its share premium fund. The schedule for distribution of funds was also confirmed.