UPM stages recovery

UPM says it staged a strong recovery in the first half of 2010 and expects second half profits to be even better.

The group recorded operating profits of €199m for the period (2009: €31m), with sales growing 20%.

Its forest and timber business showed operating profits of €71m (2009: €36m loss). Sawn timber deliveries totalled 875,000m³ (2009: 729,000m³).

Sales increased in the second quarter by 27% to €393m (2009: €309m), with sawn timber deliveries increasing by 38% to 504,000m³ (2009: 366,000m³).

Profitability improved from the same period last year, mainly due to higher average sawn timber prices and higher delivery volumes of timber goods.

UPM said the European supply-demand balance of sawn softwood timber is still challenging although it had slightly improved since last year.

The plywood division’s losses narrow to €10m from €38m. Deliveries increased to 322,000m³ from 274,000m³.

The improved result was down to higher volumes and lower raw material costs. Plywood prices remained low during the first half, with some positive development in the second quarter.