HELSINKI, Finland - Stora Enso (NYSE: SEO) today announced that following a very strong third quarter performance, Stora Enso reports its best financial result for any quarter since the merger announcement in 1998. Third quarter operating profit before non-recurring items was EUR 553 million, representing 17.0% of sales and up 27% from the second quarter. Operating profit for the first nine months was EUR 1,476 million, 15.8% of sales and 62% higher than in the corresponding period last year. The top financial performance in the industry was due to high operational efficiency, supported by synergy and productivity programs. All financial targets have been successfully met and in certain cases surpassed. Return on capital employed before non-recurring items for the third quarter is at 20.3%, well above the 13% over-the-cycle target. Capital expenditure has remained below the depreciation level. The sale of power assets has ensured a strong financial position despite the acquisition of Consolidated Papers and the ongoing repurchase of own shares. Debt/equity at the end of September was 0.69. Stora Enso has continued to focus operations. The Gruv&Mac246;n mill will be merged with two AssiDom‰n mills to form the Billerud company specializing in packaging papers. The Newton Kyme packaging board mill in the U.K., which has a capacity of 40,000 tonnes, will be closed down and some 80,000 tonnes of coated paper capacity will be permanently taken out of the North American market by closure of two machines. Overall markets during the third quarter were strong. However, the market for coated fine paper sheets has weakened, and in pulp signs of an oversupply can be seen. Stora Enso is prepared to adjust production levels as required to ensure a healthy balance of supply and demand. "Despite the slight slowing down of the economy, we believe demand will remain firm. The upswing in prices during the current cycle has, with the exception of pulp, been relatively modest and by historical standards capacity growth has been low," says Jukka H‰rm‰l‰, the CEO of Stora Enso. Stora Enso is one of the world's leading forest products companies and is domiciled in Helsinki, Finland. Its core businesses include magazine papers, newsprint, fine papers and packaging boards. In these product areas, Stora Enso holds a leading global market position. Stora Enso also conducts extensive sawmilling operations. To learn more about Stora Enso, visit the company's Web site at http://www.storaenso.com.