UPM‘s first quarter pre-tax profits have soared to €249m from €61m a year ago but its sawmilling business continues to make a loss.

The company’s sales were down to €2.27bn from €2.45bn in 2004.

Operating profits in the wood products division grew to €14m from €9m, while sales were down €76m to €312m. Improved profits were attributed to stronger plywood prices and restructuring.

Production curtailments affected sales, with plywood output 8% lower than a year ago and sawn timber 15% lower.

UPM said strong demand continued for plywood and sawn timber in Europe but sawn timber prices remained low.