First Quarter Highlights: - Revenue of $569 million up 20 percent versus prior year; TiO2 up 33 percent - GAAP diluted EPS of ($0.35); adjusted EPS of ($0.26) (Non-GAAP) - Income from operations of $16 million (GAAP); adjusted EBITDA of $101 million up 153 percent or $61 million versus prior year (Non-GAAP) - TiO2 income from operations of $32 million; adjusted EBITDA of $85 million up 286 percent or $63 million versus prior year; free cash flow of $91 million(1) - Alkali income from operations of $19 million; adjusted EBITDA of $38 million up 6 percent versus prior year; free cash flow of $41 million(1). click Read More below for additional detail
Stora Enso will start co-determination negotiations with employees at its Kvarnsveden Mill in Sweden regarding a plan to reorganise the mill, including a permanent closure of paper machine (PM) 8. The planned actions would affect a maximum of 140 employees. The paper machine has an annual capacity of 100 000 tonnes of super-calendered uncoated magazine paper (SC) and it is planned to be shut down by the end of the second quarter of 2017.
The plan would result in annual cost savings of EUR 12 million. Stora Enso will book restructuring charges of approximately EUR 17 million as an item affecting comparability (IAC) in its Q1/2017 results, of which about EUR 14 million will be cash costs. The planned closure would not have material impact on Stora Enso’s sales or operational EBIT.
“We plan to reorganise Kvarnsveden Mill to ensure its competitiveness in the structurally declining paper market. This plan includes the permanent shutdown of PM8, which, due to its small size and technical age, is unfortunately no longer competitive in the current market conditions. We appreciate the efforts taken by the employees, and regret that this plan would be necessary to support the competitiveness of Kvarnsveden Mill going forward,” says Kati ter Horst, EVP Paper division.
The closure of PM8 at Kvarnsveden Mill would not impact Stora Enso’s SC paper offering. In Europe, Stora Enso continues to produce SC paper at Kvarnsveden Mill PM12 as well at Maxau Mill in Germany and Langerbrugge Mill in Belgium. The group also serves its SC customers from Dawang Mill in China.
No decisions regarding the planned reorganisation or employee impact will be taken until the co-determination negotiations have been concluded. Production at Kvarnsveden Mill would continue on two lines, PM10 for improved newsprint paper and PM12 for SC papers.