Pulp and fine paper demand in Europe has been lower than expected and had an “adverse” impact on UPM Kymmene Corporation’s profits.
UPM operating profit for the third quarter, excluding special items, stood at €137m. UPM’s full year 2011 operating profits were expected to improve from last year but are now predicted to be “somewhat” lower than last year.
Pre-tax (enterprise value) earnings for the third quarter were approximately €330m. down from €372m in Q2, and sales were €2.6bn.
Demand for fine paper and pulp used in its production did not recover in September from the seasonal summer slowdown. Fine paper is used in the production of items such as brochures and coffee table books.
Across publication papers, demand was stable and the integration of Finnish publication paper companies Myllykoski and Rhein Papier is said to be proceeding well.
The interim report for January to September will be presented by UPM president and CEO Jussi Pesonen on 26 October.