UPM-Kymmene Corporation Financial statements release 2012 31 January 2013 at 09:45 EET
Q4/2012 • Earnings per share excluding special items were EUR 0.19 (0.16), and reported EUR -2.84 (0.20) • EBITDA was EUR 301 million, 11.4% of sales (301 million, 11.2% of sales) • Impairment charges of EUR 1,779 million were recorded in the Paper business area
• Operating cash flow continued to be strong at EUR 352 million
Q1–Q4/2012 • Earnings per share excluding special items were EUR 0.70 (0.93), and reported EUR -2.39 (0.88) • EBITDA was EUR 1,269 million, 12.2% of sales (1,383 million, 13.7% of sales) • Net debt decreased by EUR 582 million to EUR 3,010 million • Board’s proposal for dividend per share EUR 0.60 (0.60)
Jussi Pesonen comments on the full year 2012: ”In 2012, UPM’s financial position remained stable. The profitability of our businesses continued at similar level as in 2011, UPM EBITDA for the full year was slightly lower, and the operating cash flow remained strong. The Q4 result was well in line with the comparison periods and the cash flow was strong. During the year, we were able to reduce our net debt by EUR 582 million. Considering the volatile economic environment last year, this is a noteworthy achievement. With respect to our growth businesses, Energy was an outstanding performer. Additionally, Pulp and Label as well as UPM’s paper business in Asia continued to perform well. For Pulp, the decrease in market prices meant a clear decrease in the operating profit, however. In other businesses, the earnings development was positive in spite of the challenging economic environment. However, the profitability of the Paper Business Group overall was weak, although healthy cash flow continued. Paper was able to markedly reduce costs and improve its cost structure, but particularly in Europe the decrease in market prices and lower delivery volumes undermined the profit improvement potential of the business. The imbalance of demand and supply in the European graphic paper markets is tempting some to short-sighted activity. The margins are squeezed to a level which are unsustainable in light of the industry cost structures. We, however, aim to secure our cash flow. Therefore UPM’s restructuring measures of last year and plans of this year are unfortunate but inevitable. UPM has a strong and versatile business portfolio with profitable businesses which we continue to grow with measured steps. In Paper, we work hard to maintain our strong cash flow. The Board’s dividend proposal of EUR 0.60 indicates confidence in the positive development of UPM’s operative cash flow and earnings. Although the markets have suffered from uncertainties in the world economy, we made steady steps forward in our Biofore strategy in 2012. Pulp has experienced a very positive development, with growing customer segments and markets. The construction of the Lappeenranta wood-based biodiesel refinery is proceeding according to plan. The uncoated woodfree speciality paper investment in China is also going ahead, while the Label business is growing both in specialty products and in emerging markets . What is more, our innovation activity has continued and materials efficiency has improved in all of our businesses”, says Pesonen. Outlook for 2013 Economic growth in Europe is expected to remain very low in the early part of 2013. This will have a negative impact on the European graphic paper markets in particular. The hydrological situation in the Nordic countries is normalising and the forward electricity prices for 2013 are slightly higher than the realised market prices in 2012. Growth market economies are expected to fare better, which is supportive for the global pulp and label materials markets as well as paper markets in Asia and wood products markets outside Europe. In H1 2013, UPM’s performance will be underpinned by continued stable overall outlook for growth businesses such as energy, pulp and label, as compared to H2 2012. However, slightly lower publication paper prices, adverse currency development and lower delivery volumes are expected to have a clear negative impact on the European paper business profitability, as compared with H2 2012. UPM’s cost level is expected to be stable. Dividend for 2012 The Board of Directors proposes to the Annual General Meeting, to be held on 4 April 2013, that a dividend of EUR 0,60 per share be paid in respect of the 2012 financial year on 19 April 2013. The dividend will be paid to a shareholder registered in the Company’s shareholders’ register held by Euroclear Finland Ltd on the record date for dividend payment being 9 April 2013. Conference call and press conference UPM 's President and CEO Jussi Pesonen will present the results in a conference call and a webcast for analysts and investors, held in English language, on 31 January 2013 at 13:15 EET. Later in the afternoon, UPM's President and CEO Jussi Pesonen will present the results in a press conference held in Finnish language at UPM Group Head Office in Helsinki (main entrance, Eteläesplanadi 2) on 31 January 2013 , at 14:30 EET.
Conference call details:
We recommend that participants start dialing in 5-10 minutes prior to ensure a timely start to the conference. Conference call title: UPM Results 2012 Conference ID: 927316
The webcast can be replayed at www.upm.com for 12 months.
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UPM-Kymmene Corporation
UPM, Corporate Communications
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