The best performance of Stora Enso in the fourth q

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Stora Enso's performance in the fourth quarter of 2008 and the whole year

has significantly reduced production capacity. Although the income is weak, the cash flow is strong; The operating profit excluding non recurring items and fair value in the fourth quarter was 28.4 million euros, The operating cash flow was 236.7 million euros

07:00 GMT, February 5, 2009. Stora Enso group's annual financial statement announcement

CEO kangyoukun's speech:

the actual severity of the decline in customer consumption demand in the fourth quarter of 2008 is no less than our expectations and warnings in the third quarter results announcement. We have responded according to the plan by significantly reducing the output of each product category by 15% to 30%. These strong measures had a great adverse impact on operating profit, but at the same time, our working capital was reduced by about 200million euros, and our capital expenditure in the fourth quarter was reduced by% compared with the original plan, thus reducing the total capital expenditure of the whole year to 700million euros. At the same time, it was ensured that at the beginning of 2009, the inventory of all business areas and the whole supply chain was at the lowest level of senior department managers. These measures also helped us reach an agreement with customers on significant price increases for many key product categories (including paper, magazine paper, ordinary packaging board and coated paper), which are obviously necessary at the beginning of the new year

the business environment in the first half of 2009 will at least remain as challenging as at the end of 2008. We will continue to focus on pricing quality and cash flow. Our production premise will be based on customer purchase rather than building our own inventory. We also adjusted our capital expenditure budget for 2009 to 500million euros. More importantly, the purpose is to continue to reduce working capital and use it to finance most of our capital expenditure. The sharp reduction of capital expenditure in 2009 will not fundamentally change our strategy: we do not have to change our strategy every downturn in the industry, but we do need to rearrange some projects to protect the interests of the company and the flexibility of operation. This is our current work. In the same spirit, Stora Enso has also prospectively reduced liquidity risk and dependence on short-term loans since the first wave of financial crisis hit the market in mid-2007

we expect our overall unit cost growth in 2009 to be close to zero. Due to the nature of our procurement contracts, some costs (especially timber and natural gas) will begin to decline significantly in the second half of this year

in order to adjust production capacity to cope with the reduction in demand, we have begun negotiations on large-scale temporary layoffs in Finland. In addition, we have also held consultations and dialogues in Germany, Sweden and other countries to identify opportunities to quickly adjust our production capacity and costs. When necessary, we will continue to expand the appearance of temporary contact with the sample and adopt sticky soft rubber to reduce production. As the senior management of Stora Enso, we will strive to participate in cost control measures by limiting our salary for this successful listing

another announcement today details the following situation: Stora Enso has found a wrong accounting account about restricted and distributable interests in 2001 and 2006 in the audit process, which has no impact on the total share capital of the group or the parent company, but needs to reclassify € 1.512 billion from distributable interests to restricted interests. This will lead to the proposal of the board of directors to pay the shareholders 0.20 Euro earnings per share, which requires not only the approval of the annual general meeting of shareholders, but also the permission of the Finnish national patent and Registration Commission, and the proposal will be postponed until at least July 2009. We will correct this accounting problem transparently, and if the earnings are less, we plan to pay off to our shareholders in 2009

recent outlook

in Europe, due to the current economic downturn, pre-4.1 impact resistant steel balls: the quality should be 227 ± 2G, and the market demand will continue to be weak in the first half of 2009 at least, and the demand for all products of the group is significantly less than a year ago. Advertising spending began to decline sharply in the fourth quarter of 2008 and is expected to remain depressed, which greatly reduced the demand for paper

seasonal factors and the reduction of customers' reserves after the announcement of price increases may reduce the demand for paper in the first quarter of 2009. However, temporary and permanent capacity reduction measures have improved the balance of supply and demand, especially in the magazine paper and coated paper markets. Before the end of the first quarter, the demand for some packaging products is expected to rise slightly due to seasonal reasons. As construction activity has slowed rapidly in all major markets, market demand for wood products is expected to be very weak

in Europe, the price in local currency in the first quarter is rising and exceeding the level in the fourth quarter of 2008, especially the price of paper, magazine paper, coated paper and ordinary packaging paperboard; However, the price of uncoated high-end cultural paper may continue to face pressure. Prices of wood products and most industrial packaging products are expected to remain under pressure. Paper prices in export markets outside Europe are expected to fall

in China, demand for uncoated magazine paper and high-end cultural paper is expected to be weak due to slowing economic growth and customers' shrinking reserves. The continued weakness of the coated magazine paper market is affecting the uncoated magazine paper market. The price of magazine paper is expected to decline, and there is pressure on the price of high-end cultural paper. Due to the dairy scandal in China last year, the market prospect of ordinary packaging paperboard is not clear

in Latin America, it is expected that seasonal factors and high customer inventories will restrain the market demand for coated magazine paper, thus maintaining a stable price

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