Stora Enso vuosikertomus 2010 (In English)

Another solid quarter finishing a strong year, dividend increase to EUR 0.25 proposed

• EUR 167 million quarterly operating profit excluding NRI and fair valuations, up by EUR 29 million, 21% year-on-year, EBITDA excluding NRI and fair valuations up by 27%.EUR 754 million full year operating profit excluding NRI and fair valuations, up by EUR 434 million, 135%, EBITDA excluding NRI and fair valuations up by 51%.

• Maintenance costs were EUR 34 million higher in Q4 2010 than Q3 2010. Volumes lost due to maintenance decreased operating profit by EUR 20 million.
• Cost inflation forecast to be 3% for the full year 2011, primarily in the first half of the year, own actions targeted to compensate all of it.
• Strong pricing momentum continues, especially in newsprint and magazine paper.
• Operating profit excluding NRI and fair valuations is expected to be sequentially higher in Q1 2011.

Near-term Outlook

Demand for newsprint is expected to be slightly weaker in Europe but unchanged on a year ago in overseas markets. In Europe demand for coated magazine paper is forecast to be slightly stronger and demand for uncoated magazine paper stronger than a year ago.

Demand for fine paper is predicted to be similar to a year ago, although seasonally slightly stronger than in the fourth quarter of 2010. Demand for consumer board is expected to be stronger and demand for industrial packaging slightly stronger than a year ago. Demand for wood products is anticipated to be slightly stronger than a year ago but slightly weaker than in the fourth quarter of 2010.

Newsprint prices in euros in the first half of 2011 are expected to be similar to 2009 levels in Europe and significantly higher than 2009 levels in overseas markets. With the majority of biannual magazine paper contracts signed, magazine paper sales prices in local currencies are expected to be higher in the first half of 2011 than the previous quarter.

Fine paper prices are predicted to be similar to the previous quarter. Consumer board and industrial packaging prices are forecast to be slightly higher than in the previous quarter. Slightly lower prices for wood products than in the fourth quarter of 2010 are anticipated.

The political turmoil in North Africa and floods in Australia are expected to have a negative impact on the earnings capability of Wood Products in the first quarter of 2011.

Group operating profit excluding NRI and fair valuations is anticipated to be higher in the first quarter of 2011 than the fourth quarter of 2010 due to the improved cost position and prices.

The Group expects its cost inflation excluding internal actions to be 3% for the full year 2011, primarily in the first half of the year. Stora Enso’s own actions are expected to compensate all of the effects of cost inflation. Actual cost inflation excluding internal actions was 2% for the full year 2010.

Lähde: Stora Enso Oyj 8.2.2011