Moscow. Feb 02, 2010. /Lesprom Network/. UPM's earnings per share were Euro 0.57 (-0.56), excluding special items Euro 0.21 (-0.19) for the period October-December 2009. Operating profit excluding special items was Euro 186 million (loss of Euro 46 million). EBITDA margin was 17.2 %. In October–December 2009 demand has started to improve, the company said in a press release received by Lesprom Network.Earnings per share were Euro 0.33 (-0.35), excluding special items Euro 0.11 (0.42) for the period January–December 2009. Operating profit excluding special items was Euro 270 million (513 million). Strong operating cash flow of Euro 1,259 million, net debt reduced by Euro 591 million. Fixed cost savings worth Euro 300 million.
Jussi Pesonen, UPM's President and CEO, comments on the financial review for 2009:
"Tight cost control and flexible operations proved to be a good solution in the challenging business environment of 2009. Given the circumstances, UPM was able to achieve a good full year result in 2009. The Board of Directors' proposal for dividend, Euro 0.45 is in line with the company's dividend policy."
"Demand for all of our products was affected by the global recession, and our sales dropped by 18% during the year, severely impacting the profitability of our operations. Lower sales prices also impacted operating profit negatively."
"In response, timely cost savings and temporary production curtailments were applied in all of our business areas. Due to cost savings measures, the company's fixed costs decreased by Euro 300 million from the previous year. These successful savings were crucial for our financial performance in 2009."
"The operating cash flow was strong, amounting up to Euro 1,259 million for the full year. We were able to reduce our debt by Euro 591 million and clearly improve the gearing."
"In Paper and Label businesses, the internal improvements were necessary and they were professionally implemented. In Label, a quick and clear turnaround was achieved. In Plywood and Timber, the markets declined substantially in the course of the year which resulted in extensive production downtimes. Eventually, restructuring in Finland was necessary to improve long-term cost competitiveness of these businesses."
"In 2010 we expect the pulp business to improve, and we can gain the benefits of Uruguayan operations to the full. Also paper deliveries are expected to be higher than last year. However, average price for all paper deliveries will be clearly lower than last year. Demand is estimated to improve in self-adhesive labelstock."
"The operating profit for this year is not expected to change materially from last year. The first quarter is expected to be seasonally the weakest quarter. Capital expenditure for this year is forecast to be approximately Euro 300 million," says Pesonen.
Additional information: UPM-Kymmene Forest
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