Helsinki, 2011-08-03 08:31 CEST (GLOBE NEWSWIRE) -- Interim report for January–June 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.
Jussi Pesonen, President and CEO, comments on the result:
Market demand seems to have stabilized and cost development is levelling off. In these conditions the best way to make fundamental improvements in terms of profitability is through determined consolidation and restructuring. The Myllykoski acquisition gives UPM a unique momentum for profitability improvement. Already during the initial integration planning the merits of the transaction have been confirmed.
As the transaction is completed , UPM now has good prerequisites to maintain its position as the frontrunner in the field. The new combination offers us excellent opportunities to improve our cost competitiveness, also to the benefit of our customers. Although the transaction is an important step towards creating value in UPM’s Paper Business, it does not serve as a solution for all of the challenges faced by the industry’s players.
Within a year we have succeeded in reducing our net debt by EUR 675 million. It is testimony of a strong and solid operative cash flow. Our financial flexibility for further strategic manoeuvres is good and we intend to continue implementing strategic steps in our various businesses,” Pesonen concludes.
Outlook for 2011
The broad-based solid demand growth in UPM’s products experienced in the previous quarters has levelled off. The demand outlook for UPM’s products is largely stable in the second half of 2011.
Variable cost increases seem to be moderating and only minor cost increases are expected in the second half of the year compared with the first half. UPM has achieved some price increases in the third quarter in publication papers, self-adhesive labelstock and plywood, which are expected to broadly offset the increases in variable costs.
For more information please contact:
, Corporate Communications
Conference call and press conference
UPM's President and CEO Jussi Pesonen will present the Interim Report in a conference call and webcast for analysts and investors, in English, on 3 August at 13:00 Finnish time (11:00 BST, 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, on 3 August, at 14:15 Finnish time (12:15 BST, 07:15 EST).
Conference call and webcast details:
You can participate in the conference call either by dialling one of the numbers from 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 timely.
Conference call title: UPM-Kymmene Corporation Interim Report January–June 2011
Participant - UK: +44 (0)20 7162 0025
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.