Finnish paper maker UPM's third-quarter profit tops expectations
HELSINKI, Oct 26 (Reuters) - Finnish forestry company UPM on Tuesday reported third-quarter profit above expectations, benefiting from higher prices amid increased demand for pulp, cardboard and wood.
UPM experienced growth in demand, especially in Europe and North America, Chief Executive Jussi Pesonen said in a statement.
He also warned of rising costs.
"Most notably the energy markets have changed dramatically in a short period of time," he said referring to surging energy costs in Europe.
UPM said that during the second half of 2021 the tight energy market situation is expected to cause increased costs both directly and indirectly.
"UPM will continue to manage margins with product pricing, optimising its product and market mix, efficient use of assets as well as by taking measures to improve variable and fixed cost efficiency."
July-September comparable operating profit rose to 424 million euros ($493.45 million) from 215 million last year, beating the 394 million euro mean estimate from analysts polled by Refinitiv.
The comparable operating profit excludes Shotton Mill in the UK which was sold in the third quarter for 134 million euros.
UPM expects its comparable operating profit to be higher in the second half of 2021 than in the first as it aims to offset higher costs by raising product prices. ($1 = 0.8593 euros) (Reporting by Essi Lehto; Editing by Kirsten Donovan and Jane Merriman)
