UPM-Kymmene has announced that its second quarter results have improved year-on-year, with “stringent cost control” and the “efficient use of assets” driving growth.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the second quarter was up from €398m to €411m, with sales reaching €2.5bn during the period.
Of this, wood products accounted for €326m of sales with an EBITDA of €51m, and deliveries of plywood and sawn timber were up year-on-year to 247,000m3 and 637,000m3 respectively.
Operating profits for UPM’s wood product division more than doubled to €41m, with UPM stating that the profitability of the division improved “despite the increase in wood raw material costs and the tight supply of birch logs”.
“Our profitability programme contributed to the more efficient use of assets and the stringent cost control yielded savings in costs,” said Jussi Pesonen, UPM president and chief executive officer.
Looking to the third quarter, UPM expects the strong demand for sawn timber and plywood to continue, with plywood, veneers, redwood and whitewood all in demand.
