Oct 29, 2010. /Lesprom Network/. UPM posted a better-than-expected 3Q profit of Euro 178 million on the back of strong sales and higher prices. Sales rose 21% from a year earlier to more than Euro 2.3 billion. 3Q EBITDA was Euro 384 million, 16.6% of sales, company said in a statement received by Lesprom Network. Jussi Pesonen, UPM President and CEO, comments on the result for the 3Q 2010: "UPM's consistent and strong EBITDA performance continued in the 3Q. Our delivery volumes and sales prices increased in all businesses and sales grew by 21% compared with last year. In recent years, one of our targets has been to strengthen the balance sheet so that we are ready for strategic manoeuvres. Today, our business structure and the quality of our asset base work well for us. They secure good quality cash flow with moderate investments. The fact that our current net debt is lower than before the Uruguay acquisition underlines this point. In Energy, our versatile and cost competitive energy portfolio has secured us a good and steady performance. In the Pulp business area, we have benefited from the recent strong demand and from good pricing. In Paper, demand increased in all of our main markets, including also publication papers. We managed to increase average paper prices in euros by 4% compared with last year. However, the Paper business made an operating loss due to significantly higher fibre costs than last year. We aim to increase prices in all new contracts to compensate for the increased raw material costs. The profitability of the Label business improved compared with last year. Despite the rapid raw material cost inflation, the business managed to maintain its margins through productivity improvements and sales price increases. The construction industry has not yet recovered and building activity is low. However, in Plywood, business prospects have improved in industrial end uses. The profitability of the Timber business is challenged by weakening of the market. For the final quarter, we estimate both sales prices in euros and deliveries to be in line with the third quarter. Increases in variable costs will continue. We repeat our guidance for the full year 2010 and expect the operating profit for the second half of the year to be higher than for the first half", says Pesonen. UPM is one of the leading forest products companies in the world. The company's businesses focus on magazine papers, newsprint, fine and speciality papers.