UPM has reported a dip in third quarter profits due to rapidly increasing costs and strengthening of the euro.
Operating profit excluding special items fell to €195m from €209m a year ago, while net profits fell to €119m from €147m.
“The situation calls for strong action in order to move on with our profit improvement,” said Jussi Pesonen, UPM president and CEO.
Mr Pesonen said the group would “revisit” the cost competitiveness of its asset portfolio and check it against the current business environment. “The review may result in permanent or temporary capacity closures.”
The company’s sawmilling profitability decreased due to higher log prices and a soft market, while plywood remained slightly behind last year’s level.
Total sales for the quarter were €2.46bn, compared to €2.49bn a year ago.
