2011-04-28 08:30:00 CEST
2011-04-28 08:30:10 CEST
REGULATED INFORMATION
UPM-Kymmene - Interim report (Q1 and Q3)
UPM improved first quarter margins despite challenging cost environment, Earnings guidance for 2011 unchanged
Helsinki, 2011-04-28 08:30 CEST (GLOBE NEWSWIRE) -- UPM-Kymmene Corporation
Interim Report 28 April 2011 at 09:30 EET
Interim report for January-March 2011
-- Earnings per share were EUR 0.33 (0.13), excluding special items EUR 0.32
(0.15)
-- Operating profit excluding special items was EUR 198 million (116 million)
-- Sales growth continued, driven by both sales prices and delivery volumes
-- Earnings guidance for 2011 unchanged
Key figures Q1/2011 Q1/2010 Q1-Q4/2010
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Sales, EURm 2,356 2,039 8,924
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EBITDA, EURm 1) 379 288 1,343
% of sales 16.1 14.1 15.0
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Operating profit, EURm 198 107 755
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excluding special items, EURm 198 116 731
% of sales 8.4 5.7 8.2
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Profit before tax, EURm 195 82 635
--------------------------------------------------------------------------------
excluding special items, EURm 195 91 611
--------------------------------------------------------------------------------
Net profit for the period, EURm 169 70 561
--------------------------------------------------------------------------------
Earnings per share, EUR 0.33 0.13 1.08
--------------------------------------------------------------------------------
excluding special items, EUR 0.32 0.15 0.99
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Operating cash flow per share, EUR 0.32 0.40 1.89
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Shareholders' equity per share at end of period, 13.87 12.62 13.64
EUR
--------------------------------------------------------------------------------
Gearing ratio at end of period, % 44 54 46
--------------------------------------------------------------------------------
Net interest-bearing liabilities at end of period, 3,197 3,569 3,286
EURm
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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 on the first quarter of 2011:
“UPM's earnings showed a clear improvement compared to the same period last
year, due to higher sales prices and delivery volumes in most of our
businesses. We are now finally seeing market pick up even in our Plywood
business.
Our first quarter sales grew by 16% compared to the same period last year.
Despite the very clear increase in variable costs, our EBITDA margin was better
than it was in the full year of 2010.
The improvement in earnings comes from our Paper and Pulp business areas. In
Paper, delivery volumes improved, especially in markets outside Europe. The
operating loss of the Paper business decreased thanks to better prices and
deliveries. At the beginning of the year paper prices increased on average by
6%. The Pulp business continued to perform well due to remarkably high market
prices and more deliveries.
It is clear that UPM is now well positioned both in terms of business cycle and
strategy,” Pesonen concludes.
Outlook for 2011
UPM's earnings guidance for 2011 is unchanged. The operating profit excluding
special items for 2011 is expected to improve on 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.
The favourable delivery volume development seen in the first quarter is
expected to continue.
Sales prices are also expected to remain stable or improve, depending on the
business area.
Variable cost inflation has turned out to be higher than expected at the start
of the year, especially in chemical pulp and recovered paper as well as
oil-related costs, such as logistics and chemicals. The cost of wood raw
material is expected to be stable at the level seen in the first quarter and
latter part of 2010. Overall cost inflation in 2011 is now estimated to be
about the same as in 2010.
*****
The complete Interim Report is available on the company website at www.upm.com
UPM will publish the Interim Report for January-June 2011 on 3 August 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
media@upm.com
Conference call and press conference
UPM's President and CEO Jussi Pesonen will present the Interim Report for
January-March 2011 in a conference call and webcast for analysts and investors,
held in English, today on 28 April 2011 at 13:00 Finnish time (11:00 BST
(London), 06:00 EST).
Jussi Pesonen will also present the Interim Report in a press conference held
in Finnish at UPM Group Head Office in Helsinki, Eteläesplanadi 2, today at
14:15 Finnish time (12:15 BST (London), 07:15 EST).
Conference call and webcast details:
You can participate in the conference call either by dialling one of the
numbers from 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-Kymmene Corporation Interim Report January-March 2011
Conference ID: 891577
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
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