UPM’s forest and timber division saw a big decrease in profitability during 2011, registering operating profits of €52m (2010: €218m).
Like most sawmillers, UPM blamed the situation on higher raw material costs and weaker sales prices.
However, the division’s operating profits were better in the fourth quarter (€28m) than in any other quarter of last year.
Overall, sawn timber deliveries in 2011 totalled 1.68 million m³ (2010: 1.72 million m³).
UPM’s plywood division continued to make a loss, although losses lessened to €1.9m (2010: €4.9m), due to higher sales prices and delivery volumes.
Deliveries rose 3% to 656,000m³ (2010: 638,000m³). Overall sales rose to €376m (2010: €347m).
UPM expects plywood deliveries in the first quarter of 2012 to be similar to the 148,000m³ reported in the fourth quarter, with sales prices expected to be stable.
UPM’s overall operating profits fell to €459m from €755m in 2010.
