Uponor - Company Announcement

Uponor warns that full-year results will fall short of earlier guidance

Uponor Corporation          Stock exchange release          27 Sept. 2011      
   18:00 EET 

In connection with its financial reporting for the second quarter 2011, Uponor
forecast that its full-year operating profit would improve from that reported
for the previous year. This forecast was based on a combination of price
increases already implemented and the expectation of continued volume growth
based on commonly available construction industry forecasts. However, more
recent economic developments have reduced the validity of these construction
industry forecasts. 

Uponor estimates that, against earlier guidance, its net sales growth will tail
off to such an extent that the gap in operating profit, generated in the first
half of 2011, cannot be met during the latter half of the year. The
January-June 2011 operating profit lagged behind the same period in the
previous year, by €1.6 million. Forecasting the results of the net working
capital improvement programme is exceptionally challenging; hence, Uponor will
not issue a guidance on full-year cash flow for 2011. 

The management has initiated actions to improve focus, reduce cost and improve
cash flow. Among others, the company will exit from markets with poor
performance, and it plans to reduce personnel costs through headcount
reductions, where applicable, and through voluntary programmes of unpaid leave.
Production will be curtailed to run down inventories to meet the expected
demand and to support this year's cash flow. The Board continues to review the
management's plans and actions to mitigate the unsatisfactory financial
performance. 

Based on the above, Uponor is altering its full-year guidance:

Uponor's net sales is expected to improve on the 2010 level, but operating
profit should fall somewhat short of the previous year's reported result. The
Group's fixed-asset investments are not expected to exceed depreciation. 

For further information, please contact:
Jyri Luomakoski, President and CEO, tel. + 358 20 129 2824
Riitta Palomäki, CFO, tel. + 358 20 129 2822



Tarmo Anttila
Vice President, Communications
Tel. +358 20 129 2852


DISTRIBUTION:
NASDAQ OMX - Helsinki
Media
www.uponor.com



Uponor is a leading international provider of plumbing and indoor climate
solutions for residential and commercial building markets across Europe and
North America. In Northern Europe, Uponor is also a prominent supplier of
infrastructure pipe systems. Uponor offers its customers solutions that are
technically advanced, ecologically sustainable, and safe and reliable to own
and operate. The Group employs approx. 3,200 persons, in 30 countries. In 2010,
Uponor's net sales totalled €750 million. Uponor Corporation is listed on
NASDAQ OMX Helsinki in Finland. http://www.uponor.com.