Nov 01, 2006. /Lesprom Network/. Key figures for the third quarter 2006 compared to third quarter 2005: - Earnings per share were Euro 0.29 compared Euro 0.21, excluding non-recurring items Euro 0.25 compared to Euro 0.19. - Operating profit was Euro 173 million versus Euro 180 million, excluding non-recurring items Euro 209 versus Euro 172 million. - Sales were Euro 2.5 billion compared to Euro 2.2 billion. - Transfer of production from the closed production lines to UPM's other mills improved capacity utilization. UPM’s president and CEO Jussi Pesonen comments on the third quarter: “UPM's business performance improved during the third quarter. All paper divisions reported enhanced operating profit, which is good news. Also the self-adhesive business and wood products, particularly sawmills, performed well. Improved efficiency has enabled us to offset higher costs.” “Our profitability programme is progressing as planned. Savings in fixed costs will materialize starting from the fourth quarter. The whole organization is focused on implementing the programme and we will be able to deliver what we promised last spring.” “The annual growth in demand has been healthy this year. We estimate that full year growth in paper demand in Europe will be slightly under 3%. The market balance in coated grades (LWC and WFC) is developing in a positive direction since UPM has promptly implemented the closures.” “In the fourth quarter good paper demand is estimated to continue. A slight improvement in average paper prices from the third quarter is estimated mainly due to already materialized price increases in fine papers. Good growth in demand for self-adhesive materials and strong markets for both plywood and sawn timber are expected to continue. Costs of raw materials and energy are forecast to continue to rise faster than inflation but an increase in company's overall costs is expected to be moderate,” says UPM’s president and CEO Jussi Pesonen.