Jul 29, 2005. /Lesprom Network/. UPM's sales for January–June were Euro 4,531 million, 8% lower than last year’s figure of Euro 4,948 million. Paper deliveries were 4,821,000 tonnes, 9% lower than the last year. Average paper prices were higher, especially in North America. Operating profit was Euro 184 million compared to 186 million a year ago. Raw material price increases exceeded the rate of inflation, whereas cost cuttings across all segments and greater cost efficiency improved profitability. Operating profit was 4.1% of sales up from 3.8% last year. Profit before tax was Euro 199 million after 140 million in 2004. UPM’s share of the profits, after tax, of associated companies and joint ventures was Euro 12 million, down from 40 million in the same period last year. The labour dispute had a negative impact of approximately Euro 175 million. Net finance costs were Euro 69 million compared to 90 million in 2004. Exchange rate and fair value gains and losses resulted in a loss of Euro 18 million after gain of Euro 4 million. Income taxes were Euro 28 million positive compared to Euro 200 million positive and the effective tax rate, excluding the impact of non-recurring items, was 31% compared to 25%. Profit for the period was Euro 227 million, down from 340 million and earnings per share were Euro 0.44 after Euro 0.65. Paper deliveries for the first six months were 4,821,000 tonnes, 9% lower than the previous year’s figure of 5,315,000 tonnes. Magazine paper deliveries were down 11%, newsprint 6% and fine and speciality papers 9%.