UPM says lower-than-expected pulp, fine paper deliveries in Europe during Q3 negatively affected results, reports Q3 operating profit of €137M, sales of €2.6B, expects 2011 operating profit to be less than 2010

Kendall Sinclair

HELSINKI , October 14, 2011 (press release) – Lower pulp and fine paper deliveries in Europe had an adverse impact on UPM’s operating profit – Q3 operating profit excluding special items was EUR 137 million

UPM’s pulp deliveries and fine paper deliveries in Europe during Q3 2011 were lower than expected and had a negative impact on the company’s operating profit.

Fine paper demand continued to be low in Europe and deliveries did not recover in September from the seasonal summer slowdown.

However, stable demand continued in publication papers and the integration of Myllykoski and Rhein Papier proceeded well.

During Q3 2011, UPM’s operating profit excluding special items was approximately EUR 137 million and EBITDA approximately EUR 330 million. Sales were EUR 2.6 billion.

Following the lower than expected Q3 results and the continuing uncertainty in pulp and fine paper markets, UPM’s full-year 2011 operating profit is expected to be somewhat lower than last year. Previously, the full year 2011 operating profit was expected to improve from last year.

UPM will publish its Q3 2011 results on October 26, 2011.

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