Apr 28, 2011. /Lesprom Network/. UPM's sales for the 1Q 2011 were Euro 2,356 million,16% higher than the Euro 2,039 million in the 1Q 2010. Sales increased due to higher sales prices and delivery volumes, especially in the Paper business area, as the company said in a press release received by Lesprom Network. EBITDA was Euro 379 million, 16.1% of sales (Euro 288 million, 14.1% of sales). EBITDA improved clearly compared with the same period last year. Sales prices increased in most businesses. Higher sales prices improved EBITDA by approximately Euro 208 million. Operating profit was Euro 198 million, 8.4% of sales. The operating profi t excluding special items was Euro 198 million, 8.4% of sales. Profit before tax was Euro 195 million and excluding special items Euro 195 million. Interest and other fi nancing costs net were Euro 1 million. This includes dividend income of Euro 25 million from Oy Metsa-Botnia Ab. Profit for the 1Q was Euro 169 million and earnings per share were Euro 0.33. Earnings per share excluding special items were Euro 0.32. Operating cash flow per share was Euro 0.32. Jussi Pesonen, President and CEO, comments on the 1Q 2011: “UPM's earnings showed a clear improvement compared to the same period last year, due to higher sales prices and delivery volumes in most of our businesses. We are now finally seeing market pick up even in our Plywood business. Our 1Q sales grew by 16% compared to the same period last year. Despite the very clear increase in variable costs, our EBITDA margin was better than it was in the full year of 2010. The improvement in earnings comes from our Paper and Pulp business areas. In Paper, delivery volumes improved, especially in markets outside Europe. The operating loss of the Paper business decreased thanks to better prices and deliveries. At the beginning of the year paper prices increased on average by 6%. The Pulp business continued to perform well due to remarkably high market prices and more deliveries. It is clear that UPM is now well positioned both in terms of business cycle and strategy,” Pesonen concludes. UPM’s earnings guidance for 2011 is unchanged. The operating profit excluding special items for 2011 is expected to improve on last year. In the first half of 2011, operating profit excluding special items is expected to be clearly higher than that of the first half of 2010. UPM comprises of three Business Groups: Energy and pulp, Paper, and Engineered materials. UPM has production plants in 15 countries and it employs approximately 22,000 people worldwide.