Profitability of UPM’s mature markets remained weak in 2012, and results of its paper division were impacted by substantial impairment charges. Its growth businesses however performed well, while for pulp, the decrease in market prices meant a decrease in the operating profit.
Summarising the company’s results, UPM’s CEO Jussi Pesonen said that the weak economy in Europe was impacting UPM’s business environment, with the European graphic paper sector remaining the main challenge. Pesonen said that the company’s growth businesses (energy, biofuels, pulp, label paper, label) had continued to perform well in a difficult environment.
In the first half of the year 2013, UPM forecasts its performance to be underpinned by continued stable overall outlook for growth businesses as compared to the second half of 2012. However, slightly lower publication paper prices, adverse currency development and lower delivery volumes are expected to have a negative impact on the European paper business profitability, as compared with H2 2012, the company explained.
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