Aug 03, 2011. /Lesprom Network/. UPM sales for the 2Q 2011 were Euro 2,423 million, 9% higher than the Euro 2,216 million in the 2Q 2010. Sales grew mainly due to higher sales prices, especially in the Paper business area. Delivery volumes increased in external pulp sales, Label, Paper and Plywood, as the company said in a press release received by Lesprom Network. EBITDA increased to Euro 372 million, 15.4% of sales, from Euro 353 million, 15.9% of sales in the same period last year. Higher sales prices improved EBITDA by approximately Euro 128 million. The average paper price in euros increased by approximately 6% compared with the same period last year. Sales prices also increased in Energy, Plywood and Timber and in local currencies in Label. Operating profit was Euro 289 million, 11.9% of sales. The operating profit excluding special items was Euro 201 million, 8.3% of sales. The increase in the fair value of biological assets net of wood harvested was Euro 11 million compared with Euro 31 million a year before. Profit before tax was Euro 316 million and excluding special items Euro 160 million. Profit before tax includes a capital gain of Euro 68 million as a special item from the sale of 6.7% of Oy Metsa-Botnia Ab shares. Interest and other fi nance costs net were Euro 27 million. Exchange rate and fair value gains and losses resulted in a loss of Euro 14 million. Sales for January–June 2011 were Euro 4,779 million, 12% higher than the Euro 4,255 million in the same period in 2010. Sales grew due to higher sales prices and delivery volumes in most of UPM’s business areas. EBITDA was Euro 751 million, 15.7% of sales. EBITDA increased clearly compared with the same period last year. Sales prices increased in most businesses, more than offsetting the negative impact from noticeably higher variable costs. Operating profit was Euro 487 million, 10.2% of sales. The operating profit excluding special items was Euro 399 million, 8.3% of sales. Jussi Pesonen, President and CEO, comments on the result: “Our operating profit improved clearly during the first half of the year despite the cost pressures. In the second quarter, we managed to maintain the quarterly operating profit on a steady level and our EBITDA increased from last year. We were able to offset the rise in variable costs through higher sales prices. Market demand seems to have stabilized and cost development is levelling off. In these conditions the best way to make fundamental improvements in terms of profitability is through determined consolidation and restructuring. The Myllykoski acquisition gives UPM a unique momentum for profitability improvement. Already during the initial integration planning the merits of the transaction have been confirmed. Within a year we have succeeded in reducing our net debt by Euro 675 million. It is testimony of a strong and solid operative cash flow. Our financial flexibility for further strategic manoeuvres is good and we intend to continue implementing strategic steps in our various businesses,” Pesonen concludes.