UPM-Kymmene's profit before extraordinary items FIM 2,672 million from January-August

UPM-Kymmene's profit before extraordinary items for January-August amounted to FIM 2,672 million (4,537 million for the same period last year). Profitability declined, particularly in the four months to August. Earnings per share were FIM 8.02 (14.51) and return on capital employed 11.2% (17.1%).
The Group's operating profit for January-August was FIM 4,042 million, 12.0% of turnover (5,922 million and 16.6%). Profitability has been particular-ly hit by the fall in sales prices for fine paper and sawn goods, and by the decline in delivery volumes. The decrease in magazine paper deliveries has also affected earnings. Profitability for newsprint business improved thanks to higher sales prices than at the beginning of last year, although delivery volumes were down. The Packaging Materials Division and the Rauma Group also recorded improved profitability.
UPM-Kymmene's turnover for the period was FIM 33,822 million, down 5.0% on last year's figure of 35,616 million. The Group's output of paper and board decreased by 14 % and amounted to 4.012 million tonnes (4.640 million). The capacity utilization rate was 83% (98%).
Capital expenditure increased and was FIM 3,929 million (2,495 million). Interest-bearing net liabilities were FIM 25,921 million (26,361 million), which is about the same as at the turn of the year. The equity to assets ratio at 31 August was 40.9% (38.6%).
Because of the fall in sales prices and under-utilization of manufacturing capacity, UPM-Kymmene expects profitability during the remainder of the year to be about the same as that for the four months to August.
For further details:
Mr. Jouko Taipale, Vice President Financial Control, tel. +358 204 15 0069
Mr. Kari Toikka, Vice President, Investor Relations, tel. +358 204 15 0014
Mr. Markku Franssila, Vice President, Corporate Communications, tel. +358 204 15 0021