Operating profit excluding special items was Euro 138 million, 5.5% of sales. Reported operating profit was Euro 146 million, 5.8% of sales. Depreciation totalled Euro 134 million, and excluding special items Euro 135 million. Operating profit includes net income of Euro 8 million as special items.
Profit before tax was Euro 128 million and excluding special items Euro 120 million. Profit for 2 Q2013 was Euro 114 million and earnings per share were Euro 0.22. Earnings per share excluding special items were Euro 0.20.
CEO Jussi Pesonen comments on the 2Q 2013: “The 2Q was in line with our expectations: growth businesses continued to perform well, whereas Paper was impacted by lower delivery volumes and prices in Europe. Our operating profit excluding special items was Euro 138 million. Operating cash flow was lower than 2Q last year due to a temporary increase in working capital.
“Our Pulp business experienced a strong quarter, with good delivery volumes and increased prices. In Label, our growth actions resulted in increased volumes, more than offsetting the increased fixed costs caused by expanded operations. In Energy, profitability continued to be strong, despite being impacted by lower hydropower volumes. Plywood and Timber continued on a positive track despite the challenges of European markets.
Paper experienced what we believe will prove to be the weakest quarter in 2013. Profitability continued on a good level in our Chinese and speciality paper operations, but sales margins in our European graphic paper business as well as export business were significantly lower than last year. In 2Q, our Paper business also suffered a significant negative impact from unrealised energy hedges, especially when compared with Q1 2013,” Pesonen concludes.
Sales for January–June of 2013 were Euro 4,994 million, 5% lower than the Euro 5,240 million in 1Q-2Q 2012. Sales decreased due to a reduction in paper deliveries and prices.
EBITDA was Euro 542 million, 10.9% of sales. The decrease in EBITDA was mainly attributable to the Paper business area, as a result of lower average paper prices and lower delivery volumes.
Operating profit in 1H 2013 excluding special items was Euro 282 million, 5.6% of sales. Reported operating profit was Euro 227 million, 4.5% of sales. Depreciation totalled Euro 279 million, and excluding special items Euro 281 million.
Operating profit includes net charges totalling Euro 55 million as special items. The Paper business area recognised net charges of Euro 49 million related to the ongoing restructuring. Charges of Euro 9 million were recognised in Other operations, mainly related to the streamlining of global functions.
Profit before tax was Euro 194 million and excluding special items Euro 249 million. Net interest and other financing costs were Euro 43 million. Exchange rate and fair value gains and losses resulted in a gain of Euro 10 million.
Profit for 1Q-2Q 2013 was Euro 161 million and earnings per share were Euro 0.31. Earnings per share excluding special items were Euro 0.38.
UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 22,000 people.