UPM’s timber and plywood business picks up

The forest and timber division saw sales rise 9% in Q3 to €397m, while operating profits, excluding special items, was up to €8m (2012: €7m). For the first nine months of 2013 sales were marginally up to €1.27bn, while operating profits more than doubled to €27m.

UPM said its sawn timber sales mix was more favourable in Q3, compared to Q2 and cost efficiency improved as a result of restructuring. Sawn timber production and deliveries decreased seasonally, while prices were stable.

Demand in sawn timber markets outside Europe was described as good, while western European business still remained low.

The plywood division’s sales grew 4% in Q3 to €98m and deliveries rose by 2% to 169,000m3, supported by increased exports outside Europe. Operating profits were €2m (2012: -€3m).

For the first nine months, the division’s sales grew 8% to €317m and deliveries were up 7% to 546,000m3. Operating profits were €13m, compared to just €1m a year ago.

“Demand for industrial applications [in the first nine months] continued slightly stronger,” UPM said.

“In the third quarter, there were some early signs of improving demand for construction-related end-use segments in certain markets in Europe.

“Market prices increased slightly during the third quarter and were somewhat higher than last year.”