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Saturday, January 28, 2006 10:09:07 PM
UPM - How about a 10% Dividend?
UPM-Kymmene Says 3Q Profits Drop on Costs
Tuesday November 1, 8:11 am ET
UPM-Kymmene Says 3Q Profits Drop on Higher Costs, Gives Upbeat Outlook
HELSINKI, Finland (AP) -- Finnish paper maker UPM-Kymmene Corp. reported Tuesday a drop in profits for the third quarter, citing increasing costs for raw material and energy, but gave an upbeat outlook for the rest of the year.
The company reported a net profit of euro111 million (US$133 million) in the July through September period, down from euro165 million last year. Sales were euro2.24 billion (US$2.69 billion), down 8 percent from euro2.45 billion in the same period in 2004.
UPM said the seven-week Finnish labor dispute, which ended early July, had a negative effect of some euro20 million (US$24 million) in the third quarter and hurt paper deliveries.
The company said it expects paper demand in the fourth quarter to remain at the same level as in the last quarter of 2004. It also forecast average paper prices to rise in the fourth quarter and in early 2006.
The Helsinki-based company said it has suffered from a sharp rise in raw material and energy costs throughout 2005.
"The biggest challenges are in our magazine paper and newsprint businesses, where it is clear we must further improve our cost-competitiveness," Chief Executive Jussi Pesonen said. "We continue to look for ways to improve efficiency throughout the organization."
As a result, UPM expects the rise in costs to be "only moderate" during the remainder of the year.
UPM said deliveries at its key magazine paper unit were down 14 percent from the same quarter in 2004 due to the Finnish labor dispute and a separate strike at the Miramichi mill in Canada, which ended in August. Miramichi's first paper machine restarted production in mid-September, and UPM said it expects the other machine to be running later this year.
The result fell somewhat below market expectations with UPM shares down 0.8 percent to euro16.00 (US$19.49) in Helsinki trading.
Last week, Europe's biggest paper and board manufacturer, Stora Enso, reported a 51-percent drop in third-quarter earnings, and said it would slash costs by cutting about 2,000 jobs and closing four production plants.
UPM-Kymmene Corp.: http://www.upm-kymmene.com
UPM-Kymmene Says 3Q Profits Drop on Costs
Tuesday November 1, 8:11 am ET
UPM-Kymmene Says 3Q Profits Drop on Higher Costs, Gives Upbeat Outlook
HELSINKI, Finland (AP) -- Finnish paper maker UPM-Kymmene Corp. reported Tuesday a drop in profits for the third quarter, citing increasing costs for raw material and energy, but gave an upbeat outlook for the rest of the year.
The company reported a net profit of euro111 million (US$133 million) in the July through September period, down from euro165 million last year. Sales were euro2.24 billion (US$2.69 billion), down 8 percent from euro2.45 billion in the same period in 2004.
UPM said the seven-week Finnish labor dispute, which ended early July, had a negative effect of some euro20 million (US$24 million) in the third quarter and hurt paper deliveries.
The company said it expects paper demand in the fourth quarter to remain at the same level as in the last quarter of 2004. It also forecast average paper prices to rise in the fourth quarter and in early 2006.
The Helsinki-based company said it has suffered from a sharp rise in raw material and energy costs throughout 2005.
"The biggest challenges are in our magazine paper and newsprint businesses, where it is clear we must further improve our cost-competitiveness," Chief Executive Jussi Pesonen said. "We continue to look for ways to improve efficiency throughout the organization."
As a result, UPM expects the rise in costs to be "only moderate" during the remainder of the year.
UPM said deliveries at its key magazine paper unit were down 14 percent from the same quarter in 2004 due to the Finnish labor dispute and a separate strike at the Miramichi mill in Canada, which ended in August. Miramichi's first paper machine restarted production in mid-September, and UPM said it expects the other machine to be running later this year.
The result fell somewhat below market expectations with UPM shares down 0.8 percent to euro16.00 (US$19.49) in Helsinki trading.
Last week, Europe's biggest paper and board manufacturer, Stora Enso, reported a 51-percent drop in third-quarter earnings, and said it would slash costs by cutting about 2,000 jobs and closing four production plants.
UPM-Kymmene Corp.: http://www.upm-kymmene.com
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