UPM Interim Report Q3 2020:
Driving performance and transformative projects under highly exceptional circumstances
Q3 2020 highlights
- Sales decreased by 19% to EUR 2,028 million (2,493 million in Q3 2019) due to lower deliveries of graphic papers and lower pulp and paper prices
- Comparable EBIT was EUR 215 million, 10.6% of sales (342 million, 13.7%), down 37% year-over-year
- Operating cash flow was EUR 365 million (500 million)
- Successful health and safety measures enabled uninterrupted business operations and progress in transformative growth projects
- Some normalization of the COVID-19-related demand impacts, both positive and negative, in graphic papers and in labelling materials and specialty papers
- Closures of UPM Chapelle paper mill and UPM Jyväskylä plywood mill
- Announced the closure of UPM Kaipola paper mill, plans for selling UPM Shotton paper mill and streamlining in several businesses and functions
Q1-Q3 2020 highlights
- Sales decreased by 18% to EUR 6,392 million (7,791 million in Q1–Q3 2019) due to lower deliveries of graphic papers and lower pulp and paper prices
- Comparable EBIT was EUR 697 million, 10.9% of sales (1,061 million, 13.6%), down 34% year-over-year
- Operating cash flow was EUR 659 million (1,256 million)
- Net debt was EUR 89 million (-2 million)
- Cash funds and unused committed credit facilities totalled EUR 2.3 billion at the end of September
- The COVID-19 containment measures significantly decreased demand for graphic papers, while demand for labelling materials and specialty papers increased during the lockdowns
- UPM's transformative pulp project in Uruguay and biochemicals project in Germany are well on track with the planned start-up timeline