UPM Improves Quarterly Results, Pulp Business Remains Under Pressure

According to the company, all business segments contributed to the improvement in earnings. Higher sales volumes, consistent margin management, and ongoing efficiency measures had a particularly positive impact.

However, the picture in the pulp segment was mixed. While the pulp business in Uruguay increased its efficiency and was thus able to fully offset higher logistics and other costs, the market environment in Finland remains challenging, according to the company, despite declining wood prices. Earnings in the second quarter were further impacted by the maintenance shutdown at the Pietarsaari pulp mill. To improve profitability, UPM plans a temporary production shutdown at the Kaukas pulp mill and is also considering a similar measure for Pietarsaari. This is intended to optimize production and wood supply.

The Group’s strategic realignment continues as planned. During the reporting quarter, UPM and Sappi signed the definitive agreement to establish their joint venture for graphic papers.