UPM-Kymmene Corporation Stock exchange release 28 October 2010 at 09:35
UPM continued to improve profitability; balance sheet strengthened further
Q3/2010: Earnings per share were EUR 0.34 (0.08), excluding special items EUR
0.28 (0.14). EBITDA was EUR 384 million, 16.6% of sales (334 million,17.5% of
sales). Best EBITDA in three years. Sales prices and delivery volumes increased
in all businesses - sales grew by 21%.
Q1-Q3/2010: Earnings per share were EUR 0.80 (-0.24), excluding special items
EUR 0.72 (-0.10). EBITDA was EUR 1,025 million, 15.6% of sales (EUR 700 million,
12.5% of sales). Demand and delivery volumes increased in all businesses - sales
grew by 17%. Solid cash flow - net debt now lower than before the Uruguay
acquisition in Q4 2009.
Jussi Pesonen, UPM President and CEO, comments on the result for the third
quarter of 2010:
"UPM's consistent and strong EBITDA performance continued in the third quarter.
Our delivery volumes and sales prices increased in all businesses and sales grew
by 21% compared with last year.
In recent years, one of our targets has been to strengthen the balance sheet so
that we are ready for strategic manoeuvres. Today, our business structure and
the quality of our asset base work well for us. They secure good quality cash
flow with moderate investments. The fact that our current net debt is lower than
before the Uruguay acquisition underlines this point.
In Energy, our versatile and cost competitive energy portfolio has secured us a
good and steady performance. In the Pulp business area, we have benefited from
the recent strong demand and from good pricing.
In Paper, demand increased in all of our main markets, including also
publication papers. We managed to increase average paper prices in euros by 4%
compared with last year. However, the Paper business made an operating loss due
to significantly higher fibre costs than last year. We aim to increase prices in
all new contracts to compensate for the increased raw material costs.
The profitability of the Label business improved compared with last year.
Despite the rapid raw material cost inflation, the business managed to maintain
its margins through productivity improvements and sales price increases.
The construction industry has not yet recovered and building activity is low.
However, in Plywood, business prospects have improved in industrial end uses.
The profitability of the Timber business is challenged by weakening of the
For the final quarter, we estimate both sales prices in euros and deliveries to
be in line with the third quarter. Increases in variable costs will continue. We
repeat our guidance for the full year 2010 and expect the operating profit for
the second half of the year to be higher than for the first half", says Pesonen.
For more information please contact:
Mr Jussi Pesonen, President and CEO, UPM, tel. +358 204 15 0001
Mr Tapio Korpeinen, CFO, UPM, tel. +358 204 15 0004
UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284
Conference call and press conference
UPM's President and CEO Jussi Pesonen will present the Interim Report for
January-September 2010 in a conference call and webcast for analysts and
investors, held in English, on 28 October at 13:00 Finnish time (11:00 London
time, 06:00 EST).
Jussi Pesonen will also present the Interim Report for January-September 2010 in
a press conference held in Finnish at UPM Group Head Office in Helsinki,
Eteläesplanadi 2, on 28 October 2010, at 14:15 Finnish time (12:15 London time,
Conference call and webcast details
You can participate in the conference call either by dialling a number in the
list below or following the webcast online at www.upm.com. Only participants who
wish to ask questions in the conference call need to dial in. All participants
can view the webcast presentation online.
We recommend that participants start dialling in 5-10 minutes beforehand to
ensure the conference starts on time.
Conference call title: UPM-Kymmene Corporation Interim Report January-September
Conference ID: 877324
North America: +1 877 491 0064
Australia LC: +61 (0)28 2239 543
Hong Kong LC: +852 300 278 26
Japan LC: +81 (3)45 8001 94
Malaysia LC: +60 (0)37 7124 471
New Zealand LC: +64 (0)99 1924 18
Singapore LC: +65 6823 2169
South Korea LC: +82 (0)23 4831 070
Taiwan LC: +886 (0)22 1626 701
Austria: +43 (0)268 2205 6292
Belgium: +32 (0)2 290 14 07
Czech Republic: +420 (2)3900 0635
Denmark: +45 3271 4607
Finland: +358 (0)9 2313 9201
France: +33 (0)1 7099 3208
Germany: +49 (0)695 8999 0507
Hungary: +36 (0)618 8932 15
Ireland: +353 (0)1 4364 106
Italy: +39 023 0350 9003
Luxembourg: +352 270 0073 408
Netherlands: +31 (0)20 7965 008
Norway: +47 2156 312 0
Spain: +34 9178 8989 6
Sweden: +46 (0)8 5052 0110
Switzerland (GE): +41 (0)2 2592 7007
Switzerland (ZH): +41 (0)434 5692 61
UK: +44 (0)20 7162 0077
The webcast can be replayed at www.upm.com for 12 months.
It should be noted that certain statements herein which are not historical
facts, including, without limitation, those regarding expectations for market
growth and developments; expectations for growth and profitability; and
statements preceded by ‘believes', ‘expects', ‘anticipates', ‘foresees' or
similar expressions, are forward-looking statements. Since these statements are
based on current plans, estimates and projections, they involve risks and
uncertainties which may cause actual results to materially differ from those
expressed in such forward-looking statements. Such factors include, but are not
limited to: (1) operating factors such as continued success of manufacturing
activities and the achievement of efficiencies therein including the
availability and cost of production inputs, continued success of product
development, acceptance of new products or services by the Group's targeted
customers, success of the existing and future collaboration arrangements,
changes in business strategy or development plans or targets, changes in the
degree of protection created by the Group's patents and other intellectual
property rights, and the availability of capital on acceptable terms; (2)
industry conditions, such as strength of product demand, intensity of
competition, prevailing and future global market prices for the Group's products
and the pricing pressures thereto, financial condition of the customers and the
competitors of the Group, the potential introduction of competing products and
technologies by competitors; and (3) general economic conditions, such as rates
of economic growth in the Group's principal geographic markets or fluctuations
in exchange and interest rates.
Executive Vice President, Corporate Communications
NASDAQ OMX Helsinki Ltd