Consumables
Stora Enso Interim Review January-September 2012
Tuesday 23. October 2012 - Stable performance in weak Europe, preparing for the future
Operational EBIT EUR 34 million higher than in Q2 2012 at EUR 175 (EUR 141) million mainly due to lower costs, EUR 50 million lower year-on-year.
Cash flow from operations EUR 312 (EUR 362) million and liquidity EUR 1 700 (EUR 1 181) million.
Ratio of net debt to the last twelve months’ operational EBITDA 2.8 (2.7 in Q2 2012).
New packaging joint-venture to be established in Pakistan.
New profitability improvement actions planned across all Business Areas, estimated annual cost savings EUR 36 million and 520 employees affected.
Q4 2012 sales expected to be at roughly similar level and operational EBIT in line with or slightly lower than Q3 2012.
Summary of Third Quarter Results
Q3/12 Q2/12 Q3/11
Sales EUR million 2 694.1 2 720.4 2 739.3
Operational EBITDA EUR million 299.6 248.1 339.2
Operational EBIT* EUR million 174.7 141.2 224.4
Operating profit (IFRS) EUR million 161.3 152.7 178.6
Profit before tax excl. NRI EUR million 102.2 31.8 113.4
Profit/loss before tax EUR million 102.2 85.9 -14.8
Net profit excl. NRI EUR million 81.3 13.5 78.3
Net profit/loss EUR million 81.3 69.5 -49.9
EPS excl. NRI EUR 0.10 0.02 0.10
EPS EUR 0.10 0.09 -0.06
CEPS excl. NRI EUR 0.29 0.20 0.27
Operational ROCE % 8.0 6.5 10.3
*The Group has adopted operational EBIT as a key operative non-IFRS measure starting from the fourth quarter of 2011.
Operational EBIT comprises the operating profit excluding NRI and fair valuations of the segments and Stora Enso’s share of the operating profit excluding NRI and fair valuations of its equity accounted investments (EAI). Fair valuations include equity incentive schemes, synthetic options net of realised and open hedges, CO2 emission rights and valuations of biological assets related to forest assets in EAI.
Near-term Outlook
In the fourth quarter of 2012 Group sales are expected to be at roughly similar level and the operational EBIT in line with or slightly lower than the third quarter of 2012. Mill maintenance will have a negative impact on Renewable Packaging and Biomaterials during the quarter.