2011-02-02 08:45:29 CET
2011-02-02 08:46:15 CET
REGULATED INFORMATION
UPM-Kymmene - Company Announcement
UPM reports strong year of recovery
Financial Statements 2010
Helsinki, 2011-02-02 08:45 CET (GLOBE NEWSWIRE) -- UPM-Kymmene Corporation
Stock exchange release 2 February 2011 at 09:45 EET
UPM reports strong year of recovery
Financial Statements 2010
October-December 2010:
-- Earnings per share were EUR 0.28 (0.57), excluding special items EUR 0.27
(0.21)
-- Operating profit excluding special items was EUR 212 million (186 million)
-- Continued sales growth driven by prices and volume
-- Strong cash flow momentum - best quarter in 2010
-- EBITDA negatively impacted by higher than average maintenance and other
costs
January-December 2010:
-- Earnings per share grew to EUR 1.08 (0.33), excluding special items to EUR
0.99 (0.11)
-- Operating profit excluding special items was EUR 731 million (270 million)
-- Solid top-line recovery - sales increased by 16%
-- Net debt down by EUR 444 million
-- Board's proposal for dividend per share EUR 0.55 (0.45)
Key figures Q4/201 Q4/200 Q1-Q4/201 Q1-Q4/200
0 9 0 9
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Sales, EURm 2,357 2,108 8,924 7,719
--------------------------------------------------------------------------------
EBITDA, EURm 1) 318 362 1,343 1,062
% of sales 13.5 17.2 15.0 13.8
--------------------------------------------------------------------------------
Operating profit (loss), EURm 207 126 755 135
--------------------------------------------------------------------------------
excluding special items, EURm 212 186 731 270
% of sales 9.0 8.8 8.2 3.5
--------------------------------------------------------------------------------
Profit (loss) before tax, EURm 173 311 635 187
--------------------------------------------------------------------------------
excluding special items, EURm 178 156 611 107
--------------------------------------------------------------------------------
Net profit (loss) for the period, EURm 144 295 561 169
--------------------------------------------------------------------------------
Earnings per share, EUR 0.28 0.57 1.08 0.33
--------------------------------------------------------------------------------
excluding special items, EUR 0.27 0.21 0.99 0.11
--------------------------------------------------------------------------------
Operating cash flow per share, EUR 0.66 0.71 1.89 2.42
--------------------------------------------------------------------------------
Shareholders' equity per share at end of 13.64 12.67 13.64 12.67
period, EUR
--------------------------------------------------------------------------------
Gearing ratio at end of period, % 46 56 46 56
--------------------------------------------------------------------------------
Net interest-bearing liabilities at end of 3,286 3,730 3,286 3,730
period, EURm --------------------------------------------------------------------------------
1) EBITDA is operating profit before depreciation, amortisation and impairment
charges, excluding the change in value of biological assets, excluding the
share of results of associated companies and joint ventures, and special items.
Jussi Pesonen, President and CEO, comments:
“The year 2010 was characterised by recovering demand and global commodity
price inflation. With higher production volumes we were able to take full
benefit of our early efficiency improvements and bring profitability back to
pre-recession level. This is a remarkable achievement in the continuously
challenging operating environment. Our last quarter profitability was burdened
by higher than average maintenance and other costs but showed the best cash
flow for the whole year.
Our Pulp, Energy and Label businesses excelled in 2010, whereas the
profitability of the Paper business was weak. Paper deliveries increased, but
the business made operating loss due to significantly higher fibre costs. The
European paper business clearly needs consolidation to be able to improve its
cost structure. Therefore, the Myllykoski acquisition is a major strategic
opportunity for our company.
As for 2011, we remain clearly positive. Stable demand and moderating cost
inflation provide a good foundation for further profit improvement. Also our
Paper business has a positive view of this year. The price increases we
achieved at the beginning of the year will support the necessary margin
recovery and to catch up last year's cost development,” says Pesonen.
Outlook for 2011
Economic indicators point to continued economic growth, although in the mature
European and North American markets, growth is expected to be slow. Robust
economic growth is expected to continue in emerging markets. This is also
likely to maintain demand and prices for various global commodities at a high
level.
For the Group, delivery volumes overall are expected to either remain stable or
increase in 2011. Variable cost inflation is expected to moderate from the pace
seen in 2010. Sales prices of UPM's products are expected to increase,
especially in the Paper business, where the average price is expected to
increase by about 6%at the beginning of the year from the fourth quarter of
2010.
UPM operating profit, excluding special items, for 2011 is expected to improve
from last year.
In the first half of 2011, operating profit, excluding special items, is
expected to be clearly higher than that of the first half of 2010.
Capital expenditure, excluding acquisitions, for 2011 is forecast to be about
EUR 300 million.
Dividend for 2010
The Board of Directors will propose to the Annual General Meeting, to be held
on 7 April 2011, that a dividend of EUR 0.55 per share be paid in respect of
the 2010 financial year (EUR
0.45). It is proposed that the dividend be paid on 20 April 2011.
New disclosure procedure
UPM follows the new disclosure procedure enabled by the Finnish Financial
Supervisor Authority (Standard 5.2b) and hereby publishes its Financial Review
enclosed as a PDF file to this stock exchange release. UPM's Financial Review
is also available on the company website at www.upm.com
Financial information in 2011
The Annual Report for 2010 will be published on the company's website
www.upm.com on 24 February 2011. The printed Annual Report will be available in
the week starting on 17 March 2011. The Interim Reports will be published as
follows:
Interim Report January-March 2011 on 28 April 2011
Interim Report January-June 2011 on 3 August 2011
Interim Report January-September 2011 on 26 October 2011.
For more information please contact:
Mr Jussi Pesonen, President and CEO, UPM, tel. +358 204 15 0001
Mr Tapio Korpeinen, CFO, UPM, tel. +358 204 15 0004
UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284
communications@upm.com
Conference call and press conference
UPM's President and CEO Jussi Pesonen will present the Financial Review for
2010 in a conference call and webcast for analysts and investors, held in
English, on 2 February 2011 at 13:00 Finnish time (11:00 London time, 06:00
EST).
Jussi Pesonen will also present the Financial Review in a press conference held
in Finnish at UPM Group Head Office in Helsinki, Eteläesplanadi 2, on 2
February, at 14:15 Finnish time (12:15 London time, 07:15 EST).
Conference call and webcast details:
You can participate in the conference call either by dialling a number in the
list below or following the webcast online at www.upm.com. 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 dialling in 5-10 minutes beforehand to
ensure the conference starts on time.
Conference call title: UPM Financial Review 2010
Conference ID: 885 553
Phone numbers:
North America Freephone: +1 877 491 0064
India Freephone: 000 8001 0035 51
Australia LC:+61 (0)28 2239 543
Hong Kong LC: +852 300 278 26
Japan LC: +81 (3)45 8001 94
Malaysia LC:+60 (0)37 7124 471
New Zealand LC: +64 (0)99 1924 18
Singapore LC: +65 6823 2169
South Korea LC: +82 (0)23 4831 070
Taiwan LC: +886 (0)22 1626 701
Austria: +43 (0)268 2205 6292
Belgium: +32 (0)2 290 14 07
Czech Republic: +420 (2)3900 0635
Denmark: +45 3271 4607
Finland: +358 (0)9 2313 9201
France: +33 (0)1 7099 3208
Germany: +49 (0)695 8999 0507
Hungary: +36 (0)618 8932 15
Ireland: +353 (0)1 4364 106
Italy: +39 023 0350 9003
Luxembourg: +352 270 0073 408
Netherlands:+31 (0)20 7965 008
Norway: +47 2156 312 0
Spain: +34 9178 8989 6
Sweden: +46 (0)8 5052 0110
Switzerland (Geneva): +41 (0)2 2592 7007
Switzerland (Zurich): +41 (0)434 5692 61
UK: +44 (0)20 7162 0077
The webcast can be replayed at www.upm.com for 12 months.
***
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, and 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.
UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Corporate Communications
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Main media
www.upm.com
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