UPM‘s wood products division recorded a loss of €3m during the third quarter.

The company, whose overall pre-tax profits in all divisions dipped to €165m from €247m a year ago, said its wood products business was hit by knock-on effects from the Finnish paper dispute earlier this year.

UPM’s plywood business was described as profitable, while sawmilling continued to make a loss.

Sales for the division were €301m, €53m less than a year ago, partly due to the sale of the Brooks Group in 2004.

The company said birch plywood demand continued to be “brisk” and delivery times longer, while the supply/demand balance in sawn redwood markets had improved.

Whitewood remained oversupplied during the quarter and sawn timber prices were slightly down.

UPM recorded overall pre-tax profits of €149m, down from €231m in the third quarter of 2004. Sales fell to €2.24bn from €2.44bn.