The pre-tax loss compares with a profit of €115m at the same time last year. It follows sales of €1.8 billion ($A3.07bn) for the second quarter of 2009 – down 23 per cent from €2.3bn in the same period last year.

UPM chief executive and president Jussi Pesonen (pictured) said the global recession was continuing to have an impact on product demand and, as a result, ‘temporary production curtailments’ would continue.

“Weak demand from poor economic activity has led to significantly lower deliveries across all of UPM’s businesses,” he said. “Our market outlook remains cautious.”

Operating profit “declined clearly” in the first half of 2009 to a loss of €87m from a profit of €350m for the same period a year earlier.

However, Pesonen said contraction of economic activity seemed to have slowed and demand for the company’s products was stabilising. For paper, there was also some improvement in order intake.

The average paper price in euros increased by around 1 per cent from the same time a year earlier.

Read the original article at www.printweek.com.

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