UPM-Kymmene's new organization came into effect on 1 January 2002. The Group's consolidated financial information has been revised to reflect the new structure.
Financial reporting for UPM-Kymmene Paper Industry is divided between three divisions: Magazine Papers, Newsprint, and Fine and Speciality Papers. The Kaukas and Miramichi pulp mills belong to the Magazine Papers division, while the Kymi, Wisaforest and Tervasaari pulp mills are part of the Fine and Speciality Papers division. The net result for the pulp producer Metsä-Botnia, of which the Group owns 47%, will be reported under Other Operations.
Converting Industry comprises units manufacturing self-adhesive labelstock (Raflatac), siliconized release materials (Loparex), wrappings and composite materials (Walki Wisa) and vacuum and modified atmosphere packaging films (Walki Films).
Steyrermühl sawmill in Austria, which formed part of the Haindl acquisition, has been part of Wood Products Industry from 30 November 2001. Miramichi's sawmill remains a member of the Magazine Papers division.
The principal items reported under Other Operations are the forestry department, the energy department, and the real estate unit in Finland, shares in the net results of associated companies, group administrative costs, and group eliminations. The turnover of Other Operations includes the Group external sales only.
Turnover for operations under the group's present structure (around EUR 11 billion), including Haindl, was as follows (proforma):
Magazine Papers 37% Newsprint 13% Fine and Speciality Papers 22% Converting Industry 14% Wood Products Industry 14%
Consolidated turnover and operating profit for January - September 2001 (EUR million):
UPM-Kymmene UPM-Kymmeneincl. Haindl (proforma) Turnover 7,360 8,250 Operating profit 1,068 1,213 % 14.5 14.7
The proforma operating profit includes EUR 56 million in amortization of goodwill on consolidation from the purchase of Haindl.
Enclosure: Turnover and operating profit for the group's new structure for 1 January 1999to 30 September 2001. (pdf, 64 Kb)
UPM-Kymmene CorporationCorporate Communications8 January 2002