Paper, packaging and forest products manufacturer Stora Enso Oyj (SEOAY.PK) said Friday that it will record non-recurring items in the third quarter with a negative impact of nearly EUR 655 million on operating profit, including a EUR 71 million future cash impact.
The charges will have a beneficial impact of EUR 43 million on tax, net of tax impairment, while on a per share basis, earning will be negatively impacted by EUR 0.78. Annual depreciation will be reduced by about EUR 60 million.
Segment-wise, Newsprint and Book Paper segment will record NRI of EUR 80 million and Magazine Paper will take EUR 152 million as one time charge. Fine Paper division is expected to report a hefty charge of EUR 314 million, while Consumer Board to record only EUR 36 million.
Industrial Packaging segment will record one time charge of EUR 28 million and Wood Products division will record EUR 9 million.
Earlier on August 19, the company has announced an impairment charge of EUR 347 million and EUR 245 million for the planned asset restructuring. Later on October 9, the company announced the shut down of Tolkkinen Sawmill expecting a capacity reduction of 260 thousand cubic meter of sawn wood.
The company also expects to divest Kotka Mills by early 2010, and to permanently close down Varkaus Mills by the end of 2010 unless uncoated fine paper demand supply balance and pricing recovers. The close downs and capacity reduction plans are expected to affect about 450 jobs by mid-2010.
SEOAY closed Thursday's regular trading at $7.59 per share on the Pink Sheet.
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