Consumables

Stora Enso Fourth Quarter and Full Year Results 2013

Thursday 06. February 2014 - Cash flow remained strong, proposed dividend unchanged at EUR 0.30

Q4/2013 (compared with Q4/2012)
Operational EBIT EUR 152 (EUR 158) million including EUR 19 million impact of lower depreciation due to impairment charges, a margin of 5.8% (5.8%).
Negative NRI of approximately EUR 392 million, mainly due to fixed asset impairments (EUR 556 million) and Guangxi plantations fair valuation gain (EUR 179 million).
Renewable Packaging profitability improved by lower variable costs and production from Ostro??ka Mill’s new containerboard machine, which reached its target 20% EBITDA margin by the end of the year.
Strong cash flow from operations at EUR 470 (EUR 473) million, cash flow after investing activities EUR 310 (EUR 273) million.
Full year 2013 (compared with 2012)
Operational EBIT EUR 578 (EUR 630) million, a margin of 5.5% (5.8%).
EPS excluding NRI EUR 0.40 (EUR 0.33).
Strong cash flow from operations at EUR 1 246 (EUR 1 254) million, cash flow after investing activities improved to EUR 756 (EUR 578) million.
Net debt to operational EBITDA ratio improved to 2.3 (2.5), net debt decreased to EUR 2 434 million.
Transformation and divestment of non-core assets
Montes del Plata Pulp Mill currently finalising construction works, mill commissioning and final permit process. Start-up expected to commence during the first months of 2014.
Consumer board machine investment in Guangxi, China proceeding as planned. Machine expected to be operational in early 2016, as previously announced.
As announced today, Stora Enso is divesting its 40% shareholding in the US processed kaolin clay producer Thiele Kaolin Company for USD 76 (EUR 56) million. A capital gain of EUR 37 million will be recorded in Q1/2014.
Restructuring
EUR 200 million streamlining and structure simplification programme announced on 23 April 2013 proceeding as planned.
Plan to permanently shut down a coated magazine paper machine at Veitsiluoto Mill in Finland announced in January 2014.
Outlook
In Q1/2014 sales are expected to be similar to the EUR 2 604 million and operational EBIT similar or somewhat higher compared with the EUR 152 million in Q4/2013. Average prices are forecast to improve and fixed costs to decrease from Q4/2013. Renewable Packaging will be impacted by Guangxi project costs and lost production due to Skoghall Mill recovery boiler incident.