Further decline in UPM-Kymmene’s plywood sales

27.09.2019 − 

After the minor reduction in the volume of sales in the last business year, the plywood deliveries of UPM-Kymmene have been fallen in 2019. At minus 6 % against the same period of last year to 193,000 m³, the volume of sales fell just as heavily in the second quarter as it did in the preceding quarter (-6 % to 196,000 m³). After the growth in recent years, a reduction occurred for the first time again in 2018 (-2.4 % to 791,000 m³).

The sales volumes were again only partially compensated for by increases in prices. Total sales revenue generated by the “Plywood division” to the tune of 120m € thus remained 4 % short of last year’s figure and fell further still against the first quarter (-2 % to 123m €). External sales revenue (-5 % to 113m €) fell even more sharply. UPM-Kymmene says that although steady demand was registered for spruce as well as birch plywood, competitive pressure also remained high in the hardwood plywood segment.

The “Biorefining” division, which covers the pulp, sawnwood, and biofuel activities, developed better in the second quarter. Sales revenue rose by 2.0 % to 708m € and the operating result (EBIT) underwent a 3.9 % improvement to 161m €. The margin calculated on the basis of this was 22.7 %. UPM-Kymmene attributes the improvement in its results above all to higher pulp deliveries (+5 % to 877,000 t) and lower maintenance costs than a year earlier. This compensated for an increase in wood costs in Finland and the 6 % lower average pulp prices.

Taking its other divisions into account, UPM-Kymmene generated consolidated sales revenue of 2.605bn € in the second quarter. The most recent growth of 0.6 % was down quite considerably against the same period of last year. In the first quarter, the reference figure had still been able to be surpassed by 7.2 %. Higher growth rates were also achieved in each of the two preceding business years (2018: +4.7 %, 2017: +2.0 %).

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