Business News

Stora Enso will take an impairment charge of about EUR 347 million in the third quarter of 2009

Wednesday 19. August 2009 - Stora Enso has undertaken goodwill and fixed asset impairment testing during the third quarter of 2009. The resultant impairment charge will have a negative non-cash impact of about EUR 347 million on the Group's third quarter operating profit, which will be reported as non-recurring item. This impairment charge is in addition to the fixed asset impairment of EUR 245 million announced earlier today in respect of asset restructuring.

The impairment charge is due to the weak long-term outlook, especially for publication and fine papers.

The debt equity ratio will increase from 0.53 to 0.59 (based on the second quarter 2009 debt to equity ratio) as a result of the combined impact of the fixed asset impairment testing and asset restructuring.

Allocation of impairment charge between segments

——————————————————————————–
| Segment | Impairment Q3/2009* |
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| Newsprint | EUR 30 million |
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| Magazine Paper | EUR 116 million |
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| Fine Paper | EUR 155 million |
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| Consumer Board | EUR 24 million |
——————————————————————————–
| Industrial Packaging | EUR 22 million |
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| Total | EUR 347 million |
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*All charges have no cash impact.