2015-07-28 08:15:00 CEST
2015-07-28 08:15:05 CEST
REGULATED INFORMATION
UPM-Kymmene - Interim report (Q1 and Q3)
Interim Report Q2/2015: UPM’s good progress continued in Q2, with higher profits year-on-year
UPM-Kymmene Corporation Interim Report 28 July 2015 at 9:15 EET
Interim Report Q2/2015: UPM's good progress continued in Q2, with higher
profits year-on-year
Q2 2015 compared with Q2 2014
• Earnings per share excluding special items were EUR 0.33 (0.26), and reported
EUR 0.30 (0.25)
• Operating profit excluding special items increased to EUR 227 million, 8.9%
of sales (186 million, 7.6% of sales)
• Profitability was underpinned by profit improvement actions and favourable
exchange rates
• In Q2 2015, the profit improvement programme progressed well, reaching a cost
reduction impact of EUR 27 million (annualised EUR 108 million)
• Operating cash flow was strong at EUR 324 million (215 million)
Q1-Q2 2015 compared with Q1-Q2 2014
• Earnings per share excluding special items were EUR 0.62 (0.53), and reported
EUR 0.59 (0.61)
• Operating profit excluding special items increased to EUR 431 million, 8.6%
of sales (382 million, 7.8% of sales)
• UPM started commercial deliveries of advanced renewable diesel and completed
the UPM Raflatac expansions in Poland and APAC
• UPM invests in the top-performing plywood and pulp businesses by expanding
the Otepää plywood mill in Estonia and improving efficiency in the UPM Kaukas
pulp mill
• UPM closed 800,000 tonnes of graphic paper production capacity in Europe
Key figures Q2/201 Q2/201 Q1/201 Q1-Q2/2 Q1-Q2/2 Q1-Q4/2
5 4 5 015 014 014
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Sales, EURm 2,548 2,441 2,486 5,034 4,922 9,868
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EBITDA, EURm 317 305 325 642 628 1,306
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% of sales 12.4 12.5 13.1 12.8 12.8 13.2
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Operating profit (loss), EURm 206 176 203 409 367 674
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excluding special items, EURm 227 186 204 431 382 847
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% of sales 8.9 7.6 8.2 8.6 7.8 8.6
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Profit (loss) before tax, 182 159 181 363 396 667
EURm
excluding special items, EURm 203 169 182 385 345 774
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Profit (loss) for the period, 160 129 155 315 322 512
EURm
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Earnings per share, EUR 0.30 0.25 0.29 0.59 0.61 0.96
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excluding special items, EUR 0.33 0.26 0.29 0.62 0.53 1.17
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Operating cash flow per 0.61 0.40 0.20 0.81 0.90 2.33
share, EUR
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Equity per share at end of 14.30 13.76 14.61 14.30 13.76 14.02
period, EUR
--------------------------------------------------------------------------------
Gearing ratio at end of 35 40 31 35 40 32
period, %
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Net interest-bearing 2,635 2,925 2,419 2,635 2,925 2,401
liabilities at end of
period, EURm
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Jussi Pesonen, President and CEO comments on the results:
“Our second quarter showed good progress, our operating profit improved
year-on-year and our operating cash flow was strong. Overall, the Group results
were supported by our profit improvement programmes, particularly visible as
lower variable costs.
UPM Biorefining, UPM Raflatac, UPM Plywood and UPM Paper Asia enjoyed
favourable market conditions and achieved good performance. I'm pleased that we
have ongoing growth projects in all of these businesses. Considering the
current electricity markets UPM Energy made a fair result, mainly due to
increased hydro power volumes.
Currency development had an overall positive impact on our Group results but
affected our businesses differently. The positive currency impact supported the
UPM Biorefining business, whereas the corresponding negative impact of currency
hedges affected UPM Paper ENA and UPM Paper Asia. Strong pulp price development
in euros boosted UPM Biorefining results but increased costs in our paper
businesses.
During the second quarter, our UPM BioVerno renewable diesel was introduced to
Finnish consumers, UPM Raflatac's investments in APAC and in Poland were
completed and a EUR 50 million investment was started at UPM Kaukas pulp mill
in Lappeenranta, Finland. These, together with ongoing investments at the UPM
Kymi pulp mill, Otepää plywood mill and UPM Changshu paper mill, will support
profit growth in the upcoming quarters.
Overall, I remain confident about the continuing profit improvement programme
and the ongoing growth projects. UPM continues to be well-positioned for
earnings growth”.
Outlook for 2015
The improved profitability achieved in 2014 is expected to continue in 2015,
and there are prospects for further improvement. Profitability is underpinned
by the EUR 150 million profit improvement programme, favourable currencies, as
well as the first positive impacts from the company's growth projects.
Profitability is affected by lower publication paper prices and lower
electricity sales prices, compared to 2014.
In the second half of 2015 compared to the first half of 2015, UPM Paper ENA
profitability is expected to improve.
Conference call and press conference
UPM's President and CEO Jussi Pesonen will present the results in a conference
call and a webcast for analysts and investors, held in English language, on 28
July 2015 at 13:15 EET.
Later in the afternoon, Jussi Pesonen will present the results in a press
conference held in Finnish language at the UPM Group Head Office (The Biofore
House) in Helsinki, Alvar Aallon katu 1, at 14:30 EET.
Conference call and webcast details:
The conference call can be participated in either by dialing a number in the
list below or following the webcast online at www.upm.com or through this link.
Only participants who wish to ask questions in the conference call need to dial
in. All participants can view the webcast presentation online. We recommend
that participants start dialing in 5-10 minutes prior to ensure a timely start
of the conference.
The presentation is available at www.upm.com for 12 months after the call.
Conference call title: UPM Q2 2015 Interim Report
Direct telephone numbers:
FI: +358 981 710 495
UK: +44 203 194 05 52
NO: +47 235 002 11
SE: +46 8 566 427 02
US: +1 855 716 15 97
BE: +32 800 584 11
FR: +33 805 980 143
DK: +45 823 331 78
International telephone numbers with a pin code 307134#
AU: +61 284 058 533
AT: +43 192 804 93
CH: +41 225 802 994
DE: +49 211 971 900 76
ES: +34 911 140 089
HK: +85 230 773 566
IN: +91 226 187 51 56
IR: +353 144 756 82
IT: +39 023 601 38 09
JP: +81 344 556 491
NL: +31 207 095 111
SP: +65 642 983 39
CN +86 4006121262
**
It should be noted that certain statements herein, which are not historical
facts, including, without limitation, those regarding expectations for market
growth and developments; expectations for growth and profitability; and
statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or
similar expressions, are forward-looking statements. Since these statements are
based on current plans, estimates and projections, they involve risks and
uncertainties which may cause actual results to materially differ from those
expressed in such forward-looking statements. Such factors include, but are not
limited to: (1) operating factors such as continued success of manufacturing
activities and the achievement of efficiencies therein including the
availability and cost of production inputs, continued success of product
development, acceptance of new products or services by the Group's targeted
customers, success of the existing and future collaboration arrangements,
changes in business strategy or development plans or targets, changes in the
degree of protection created by the Group's patents and other intellectual
property rights, the availability of capital on acceptable terms; (2) industry
conditions, such as strength of product demand, intensity of competition,
prevailing and future global market prices for the Group's products and the
pricing pressures thereto, financial condition of the customers and the
competitors of the Group, the potential introduction of competing products and
technologies by competitors; and (3) general economic conditions, such as rates
of economic growth in the Group's principal geographic markets or fluctuations
in exchange and interest rates. For more detailed information about risk
factors, see pages 76-77 of the company's annual report 2014.
**
UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Stakeholder Relations
UPM, Media Relations
9.00-16.00 EET
tel. +358 40 588 3284
media@upm.com
www.twitter.com/UPM_News
www.facebook.com/UPMGlobal
www.linkedin.com/company/upm-kymmene
Through the renewing of the bio and forest industries, UPM is building a
sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM
Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood.
Our products are made of renewable raw materials and are recyclable. We serve
our customers worldwide. The group employs around 20,000 people and its annual
sales are approximately EUR 10 billion. UPM shares are listed on NASDAQ OMX
Helsinki. UPM - The Biofore Company - www.upm.com
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