UPM's 4Q 2016 sales were Euro 2,476 million, 3.8% lower than the Euro 2,574 million for 4Q 2015, mainly due to lower sales prices in several businesses, as the company said in the press release received by Lesprom Network.
Comparable EBIT increased by 15% to Euro 283 million, 11.4 % of sales. EBIT was negatively impacted by clearly higher maintenance activity, especially in UPM Biorefining, resulting in higher fixed costs and lower operational efficiency than in the comparison period.
4Q 2016 operating profit totalled Euro 232 million, compared to Euro 220 million in 4Q 2015. Items affecting comparability in operating profit totalled charges of Euro 51 million, including restructuring charges of Euro 49 million in UPM Paper ENA.
Profit for 4Q 2016 was Euro 187 million, and comparable profit was Euro 220 million.
Sales for 2016 were Euro 9,812 million, 3% lower than the Euro 10,138 million in 2015, mainly due to lower sales prices in several businesses.
Comparable EBIT increased by 25% to Euro 1,143 million, 11.6 % of sales. Variable and fixed costs were significantly lower than in the comparison period, partly driven by UPM’s ongoing profit improvement measures.
FY 2016 operating profit totalled Euro 1,135 million, compared to Euro 1,142 million in 2015. Items affecting comparability in operating profit totalled net charges of Euro 7 million.
Profit for 2016 was Euro 880 million, and comparable profit was Euro 879 million.
Jussi Pesonen, President and CEO, comments on 4Q and full year 2016 results: "Year 2016 was financially a record year. It demonstrates the results of our transformation and sets the stage for the future. Today's UPM is earnings growth oriented, capable and financially strong. Now we have the opportunity to seek new horizons and continue to aim higher.
We achieved a lot over the course of the year. We grew with our customers in many growth markets. In addition, our own cost-efficiency measures succeeded well. Our comparable EBIT increased by 25% and our operating cash flow was record strong at Euro 1,686 million. Our net debt was Euro 969 million lower than a year ago, reaching an industry-leading 0.73 times EBITDA. All of this was reflected in the positive share price performance during the year."
