UPM's EBITDA and operating cash flow improved in 2011:
EBITDA was EUR 301 million, 11.2% of sales (318 million, 13.5% of sales).
Delivery volumes decreased and variable costs remained high.
Operating cash flow continued to be strong at EUR 310 million.
January–December 2011:
Earnings per share excluding special items were EUR 0.93 (0.99), and reported EUR 0.88 (1.08)
EBITDA was EUR 1,383 million, 13.7% of sales (1,343 million, 15.0% of sales)
Solid cash flow ensured strong balance sheet after the Myllykoski acquisition
Board’s proposal for dividend per share EUR 0.60 (0.55)
Jussi Pesonen, President and CEO, comments the year:
“During 2011 our EBITDA and operating cash flow improved on 2010 and our strong financial position continued.
Prices of all production inputs increased substantially compared to 2010 but we succeeded in raising prices to cover the cost increases.
However, during the latter part of the year the deterioration of pulp prices and lower demand for paper and wood products had a clear impact on our profitability. In the label market the weak demand was evident in Europe but solid development continued in other markets.
Demand weakened during the fourth quarter, but we were able to maintain stable sales prices in most businesses with the exception of Pulp and Timber. Raw material market prices started to decline towards the end of the year, but our variable costs still remained on a high level during the last quarter of 2011.
The major strategic signpost in 2011 was the Myllykoski acquisition. The transaction, the integration and the restructuring have all proceeded in line with our plans. The consolidation and the consequent restructuring have improved our cost position on the paper markets. Also, our customer offering in paper has been enhanced. Targeted synergy benefits are well on the way to being successfully implemented and this will start to be visible as of the first quarter of 2012.
Although our markets have been affected by the uncertainties in the world economy, UPM’s outlook into the first half of 2012 is fairly stable. We are in a good position to proceed with the next steps in our Biofore strategy,” says Pesonen.
