UPM: Excellent quarter, further steps in transformation

Q3 2017 highlights
•Comparable EBIT increased by 12% to EUR 351 million (314 million in Q3 2016).
•Good growth in deliveries and strong operational efficiency with no significant maintenance activity.
•Strong operating cash flow at EUR 486 million (506 million).
•Net debt decreased to EUR 623 million (1,479 million).
•UPM announced a new focused growth project at the UPM Chudovo plywood mill in Russia.
•UPM announced the next step towards entering a new sustainable biochemicals business.

Q1-Q3 2017 highlights
•Comparable EBIT increased by 8% to EUR 926 million (859 million in Q1-Q3 2016).
•Solid profit performance continued through a turn in input cost environment.
•Growth initiatives contributed to the comparable EBIT growth.
•Strong operating cash flow at EUR 1,151 million (1,281 million).
•UPM announced focused growth investments at the Kaukas pulp mill and the Tampere label stock factory.
•UPM announced divestments of hydropower assets in Germany, Austria and the US.

Jussi Pesonen, President and CEO, comments on the Q3 result: “The third quarter was another excellent quarter for UPM. The markets were favourable and we achieved good growth in delivery volumes. We also succeeded in mitigating input cost inflation with sales price increases and cost efficiency measures. Our operational efficiency was strong in a quarter with no significant maintenance activity.

Our comparable EBIT increased by 12 per cent to EUR 351 million. Operating cash flow was strong at EUR 486 million and net debt decreased to EUR 623 million, representing 0.4 times EBITDA.

UPM Biorefining benefitted from higher pulp prices and good delivery growth. UPM Raflatac, UPM Specialty Papers and UPM Plywood were able to largely offset higher input costs by increasing deliveries and sales prices. In UPM Energy the hydropower generation recovered to normal level.

UPM Paper ENA was able to report the best quarter of this year, despite the significant increase in fibre costs. This is the outcome of consistent and continuous work for cost efficiency and competitiveness as well as the stringent execution of commercial strategies. In order to succeed also next year, we need to take timely measures in capacity management and cost savings.

In addition to our strong performance we are pleased to see good progress in our transformation, including our initiatives for future growth.
more detail at:  http://www.upm.com/About-us/Newsroom/Releases/Pages/Excellent-quarter,-further-steps-in-transformation-001-Tue-24-Oct-2017-09-39.aspx

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