Product category:
Printing Substrates - Paper, Forms and Stationery
News Release from: UPM-Kymmene Corporation
Edited by the Printingtalk Editorial
Team on 06 February 2007
Paper Sales Up By 30% Reach EUR10
Billion
Paper company UPM's sales have exceeded EUR 10 billion, with operating profit for 2006 up by 30 per cent.
Paper company UPM's sales have exceeded EUR 10 billion, with operating profit for 2006 up by 30 per cent UPM's president and chief executive officer, Jussi Pesonen, commented: "UPM's operating profit improved clearly over the last year and the profitability of all business areas developed well
This article was originally published on Printingtalk on 22 Mar 2004 at 8.00am (UK)
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Last spring, UPM launched a profitability programme that improved the company's competitiveness in the paper industry and laid the foundation for sustainable profitability." He continued: "In 2006, UPM Raflatac developed in to a major global business and the reorganisation of the Wood Products Division had a positive impact on the business area's profitability.
UPM made good progress." And Pesonen explained: "The year was a turning point for UPM, but the continuing industry transformation is not over.
The forest industry's business environment will continue to be challenging and only efficient production and supply can guarantee future success.
UPM got off to a good start in this race last year." He added that it was critical that customer deliveries from the closed, unprofitable paper machines were successfully transferred to UPM's other machines.
During last year, mill productivity improved and UPM can use its own capacity more effectively and profitably than before.
"We expect the Group's profits to grow this year.
Despite the increase in wood, raw material and energy prices, the increase in the company's overall costs is expected to increase moderately, one per cent - two per cent.
This year, the annual cost savings of the profitability programme are estimated to amount to EUR110 million," commented Pesonen.
And he emphasised: "Demand forecasts are largely positive across the board.
Demand for printing papers is forecast to grow somewhat from last year.
The strongest growth in demand will be in emerging markets.
In North America, weak demand is expected to continue but we expect paper deliveries to increase over last year.
Average paper price is slightly higher in the first quarter of 2007 than that of the fourth quarter of 2006." He concluded: "Demand for self-adhesive labelstock is expected to grow in all markets and prices are forecast to remain stable.
Demand for industrial wrappings is also expected to grow slightly.
In wood products demand for plywood and sawn timber will remain good.".
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