Stora Enso Oyj (SEO)

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Finland-based Stora Enso OYJ (SEO) is a leading paper and board manufacturer with production facilities in 20 countries spread across three continents. The company's core products include: magazine paper, newsprint, fine paper, timber products, and packaging boards. Products are primarily marketed in North America, Europe, and Asia. Stora operates along three broad lines: paper, packaging boards, and forest products. The company employs over 44,000 people in more than 40 countries on five continents.

Stora Enso recently reorganized its operations from four divisions into eight separate business areas. Paper products are broken down into two separate product groups, magazine paper and fine paper. Magazine paper products consist of newspapers, directory papers, book papers, and any other type of paper that is used for magazines, printed advertising materials, catalogues, newspapers, telephone directories, hardback & paperback books, and many other types of publications. Magazine paper comprises approximately 18.2% of revenues and had an operating margin of 2.9% in 3Q07, which was up 0.8% from the year-ago period. Fine paper consists of graphic papers, office papers, specialty papers that are used for document printing, labeling, commercial printing, high-quality books and protecting, transporting, and identifying products. Fine paper comprises approximately 16.4% of revenues and had an operating margin of 7.3% in 3Q07, higher than the margin registered in the third quarter of 2006. Consumer board is comprised of carton-boards, containerboards, corrugated packaging, laminating papers, cores, and any other type of paper that is used for packaging. Consumer board comprises approximately 17.4% of revenues and had an operating margin of 4.8% in 3Q07, lower than 10.7% recorded in the year-ago period. Industrial packaging recorded 8.3% revenues with an operating margin of 9.3%, lower than 10.6% registered in 3Q06. Newsprint grossed 13.3% of revenues with an operating margin of 12.1%, lower than 14.3% achieved in 3Q06. Wood products are comprised of sawn and further-processed wood products that are used in the construction and joinery industries and wood trade. Wood products comprise 14.2% of revenues and had an operating margin of 8.0% in 3Q07, up 270 basis points from that registered during 3Q06. Merchants recorded 14.6% of revenues with an operating margin of 1.7% in 3Q07, flat year over year.

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