UPM has posted pre-tax losses of €26m for the second quarter.

The company’s result compares with €115m profits a year ago. For the first half, losses totalled €188m, while sales reached €3.69bn (2008: €4.7bn).

UPM’s forest and timber division recorded an operating loss of €18m on €309m sales in the second quarter. Sawn timber deliveries dropped 42% to 366,000m³, compared to a year ago.

Profitability weakened from last year due to an average 16% lower price of delivered timber, as well as the lower volumes of deliveries.

The plywood division experienced a quarterly operating loss of €10m (2008: €19m profits) from sales of €77m (2008: €150m).

Plywood deliveries declined 38% to 141,000m³ (2008: 227,000m³).