UPM's net sales in July-September decreased by two percent from the corresponding quarter of last year to 2.52 billion euros. Comparable operating profit, on the other hand, rose by 32 percent to EUR 291 million, or 11.5 percent of turnover.

The company's January-September net sales decreased by three percent from last year to 7.71 billion euros. Comparable operating profit rose by 17 percent to EUR 806 million, which was 10.5 percent of turnover.

"The UPM Paso de los Toros pulp mill, which was in full production, had a significant impact on the profit improvement. Although the result clearly increased, it was lower than expected, as the market demand for our products slowed down after an encouraging start to the year", CEO Massimo Reynaudo commented in the press release.

UPM expects the comparable operating profit for the last quarter of the current year to be at the same level or to increase from last year. The company's comparable operating profit for the whole year is expected to be at the same level or to rise from 2023.

Domestic wood cost leads to consequential measures

Both in the results announcement and in the webcast directed at the media and analysts, it was clearly pointed out that UPM sees the cost of wood in Finland as unsustainable.

When the Chinese pulp market has been soft, i.e. prices are relatively low, the company has seen it necessary to cut the rise in Finnish fiber costs with production restrictions. The pulp mills in Kaukaa and Kymi have been shut down during the fall, but the mills in Pietarsaari and Uruguay have been running at full capacity.

The output will be accelerated by efficiency measures in Finland's pulp and sawmill industry and forestry operations, but the measures were not explained in more detail.