Stora Enso’s third-quarter results will show a £1.3bn impairment charge after the company reorganised from four divisions to eight.
The operational change has taken immediate affect, with the Scandinavian company now focused on merchants, wood products, consumer board, industrial packaging, magazine paper, newsprint, fine paper and North America.
According to Stora Enso, the impairment charge, which can be attributed to €300m of goodwill and €1bn of fixed assets, will have a one-off positive tax impact of €100m but will reduce the company’s capital employed by €1.2bn.
Stora Enso said that the distribution of the impairment charge will be announced on October 15 with all eight business areas likely to be affected, although, in the long-run, the restructure would “facilitate scalability for the future”.
