Helsinki, 2011-04-28 08:30 CEST (GLOBE NEWSWIRE) -- UPM-Kymmene Corporation Interim Report 28 April 2011 at 09:30 EET
Interim report for January–March 2011
1) EBITDA is operating profit before depreciation, amortisation and impairment charges, excluding the change in value of biological assets, excluding the share of results of associated companies and joint ventures, and special items.
J ussi Pesonen, President and CEO, comments on the first quarter of 2011 :
“UPM's earnings showed a clear improvement compared to the same period last year, due to higher sales prices and delivery volumes in most of our businesses. We are now finally seeing market pick up even in our Plywood business.
Our first quarter sales grew by 16% compared to the same period last year. Despite the very clear increase in variable costs, our EBITDA margin was better than it was in the full year of 2010.
The improvement in earnings comes from our Paper and Pulp business areas. In Paper, delivery volumes improved, especially in markets outside Europe. The operating loss of the Paper business decreased thanks to better prices and deliveries. At the beginning of the year paper prices increased on average by 6%. The Pulp business continued to perform well due to remarkably high market prices and more deliveries.
It is clear that UPM is now well positioned both in terms of business cycle and strategy,” Pesonen concludes.
Outlook for 2011
UPM’s earnings guidance for 2011 is unchanged. The operating profit excluding special items for 2011 is expected to improve on last year. In the first half of 2011, operating profit excluding special items is expected to be clearly higher than that of the first half of 2010.
The favourable delivery volume development seen in the first quarter is expected to continue.
Variable cost inflation has turned out to be higher than expected at the start of the year, especially in chemical pulp and recovered paper as well as oil-related costs, such as logistics and chemicals. The cost of wood raw material is expected to be stable at the level seen in the first quarter and latter part of 2010. Overall cost inflation in 2011 is now estimated to be about the same as in 2010.
The complete Interim Report is available on the company website at www.upm.com
UPM will publish the Interim Report for January–June 2011 on 3 August 2011.
For more information please contact:
, Corporate Communications
Conference call and press conference
UPM's President and CEO Jussi Pesonen will present the Interim Report for January-March 2011 in a conference call and webcast for analysts and investors, held in English, today on 28 April 2011 at 13:00 Finnish time (11:00 BST (London), 06:00 EST).
Jussi Pesonen will also present the Interim Report in a press conference held in Finnish at UPM Group Head Office in Helsinki, Eteläesplanadi 2, today at 14:15 Finnish time (12:15 BST (London), 07:15 EST).
Conference call and webcast details:
We recommend that participants start dialling in 5–10 minutes beforehand to ensure the conference starts on time.
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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.