Helsinki - Finnish paper and forestry group Stora Enso on Monday said its operating profit has been lowered for fourth-quarter
2008, citing the impact of inventory write-downs and production cuts.

The group said preliminary estimates put the write-down at 670 million euros (881 million dollars).

Full details were due in connection with the full-year report next month.

During the fourth quarter, Stora Enso reduced paper and board production by some 15 per cent - or about 490,000 tons.

Pulp production was cut by about 20 per cent and sawnwood production was reduced by 30 per cent of capacity, the group said in a statement.

Stora Enso said it also planned to introduce temporary lay-offs of thousands of workers in Finland.

Talks were to commence with unions about temporary lay-offs impacting some 5,000 workers of the some 9,000 employed in Finland.

The length of the lay-offs could range from a week to several weeks.

Stora Enso, one of the world's largest pulp and paper concerns, has a global workforce of 36,000 employees.

Share prices for the group was down some 4.5 per cent on the news, at the Helsinki bourse. (dpa)