Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
ArchiveJuly 3 2005

Esko Mäkeläinen, Senior executive vice-president & CFO, Stora Enso Oyj

1. In a cyclical industry like the forest industry, our revenues are volatile. During a down cycle our profits go down and during the up cycle profits improve. To reduce the impact of this cyclicality, our financing is generally linked to a short-term rate.
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon

Though, if the cycle is turning and interest rates head up, we extend our durations within certain limits.

2. Stora Enso has reported its accounts in accordance with IAS/IFRS since 1998 and, being listed on the NYSE, also complies with SOX. We understand investors worries about having accurate and reliable financial data from publicly traded companies like ours, but some of the recent trends are counterproductive. Accounting standards that strive towards market valuations are causing confusion among users of financial data by adding volatility to financial items, and the SOX 404 process adds controls on top of controls. That is overdoing the process.

To continue reading, join our community and benefit from

  • In-depth coverage across key markets
  • Comments from financial leaders and policymakers worldwide
  • Regional/country bank rankings and awards
Activate your free trial