<B>Stora Enso Posts Strong Numbers, Sees Weakness</b>

Stora Enso Oyj posted sharply higher full-year profits, but the company said a fourth quarter slowdown, as well as continued slippage in market conditions are deteriorating the company’s business.

Net income in 2000 jumped 93% to $1.34 billion. The company also reported a 24 percent increase in sales.

But in a possible sign of a slowdown, Stora Enso recorded less-than-expected pretax profit after nonrecurring.

Stora Enso attributed its higher profits to increased prices and improved efficiency, but the company said it experienced a slowdown in the fourth quarter and that its prospects look weak for many key products in 2001.

The company reported a 49 percent increase in full-year operating profit before nonrecurring items. For the fourth quarter, profit before nonrecurring items increased from the same time in 1999, although it declined 21 percent from the previoius month.

Stora Enso said the decrease in quarterly operating profit was caused by production curtailments of around 280,000 metric tons in pulp, paper and board due to weaker markets and seasonal investment stoppages.

To compensate for the sliding pulp prices Stora announced that it would continue to reduce its production schedules to help balance supply and demand.

Stora Enso said prospects for 2001 appear weaker than last year due largely to uncertainly in coated fine paper and pulp. The market for publication papers is expected to be stable though due to a better capacity and demand balance.

The company said underlying demand should be good, but it intends to control capacity utilization to adjust to market demand. "Stora Enso believes that its market position and balance sheet are strong enough to withstand any turbulence and uncertainty in the market," the company said.