UPM’s profits fell to €559m in 2003, as the company experienced a weak market situation for the third year in a row.
The results, which were €120m down on 2002, were “unsatisfactory”, according to the company’s new president and chief executive officer Jussi Pesonen.
Sales were down from €10.4bn in 2002 to €9.9bn last year, with the depreciation in the US dollar and tight price competition blamed for the drop.
Mr Pesonen said: “The general economic situation has shown signs of recovery in the main markets.
“However, the operating profit for the first quarter of 2004 is estimated to be lower than that of last year due to the current price level and the strengthened euro. As demand rises, the company is in a good position to improve its financial performance.”
He said UPM had already achieved more than two-thirds of its €200m savings target.
