Tight cost control has helped to vastly improve UPM’s fourth quarter operating results, with the group reporting profits of €186m (2008: €46m loss).
In a statement made today, UPM also said sales dropped 18% during 2009 with full-year operating profits falling to €270m from €513m.
The lower volumes and prices were the reason for the reduced 2009 result.
“The company’s fixed costs decreased by €300m from the previous year,” said president and CEO Jussi Pesonen. “These successful savings were crucial for our financial performance in 2009.”
UPM’s plywood division recorded fourth quarter sales of €81m (2008: €102m) and an operating loss of €33m (2008: €10m loss), with weak market demand leading to extensive production downtime.
The forest and timber division saw sales of €348m (2008: €419m) and a operating profits of 35m excluding special items, compared with a €61m loss a year ago.
Sawn timber deliveries for 2009 decreased 30% to 1.49 million m³ from 2.13 million m³ in 2008.
“The current year will pose challenges, but we see signs of improvement, too,” said Mr Pesonen. However, in our main markets, recovery is expected to be slow and to differ from country to country. Low capacity utlisation rates and a flexible way of working in our timber, plywood and European paper mills will continue.”
