upm-kymmene oyj-spons adr (UPMKY) Key Developments
UPM-Kymmene Slashes European Paper Production, Cuts 550 Jobs
Nov 13 14
UPM-Kymmene announced 550 job losses in Europe in an industry hard hit by readers moving to digital publications. The company plans to close newsprint facilities during 2015 employing 130 in Wales and almost 200 in France. More than 200 jobs will go at magazine paper plants in Finland. Paper plant closures have become commonplace across Europe as consumers use the Internet and digital devices for a growing range of services, sending demand for printing paper tumbling.
UPM-Kymmene Oyj Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Capital Expenditure Guidance for the Full Year 2014
Oct 28 14
UPM-Kymmene Oyj reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported sales of €2,415 million against €2,472 million a year ago. Operating profit was €236 million against €187 million a year ago. Profit before tax was €214 million against €166 million a year ago. Profit attributable to owners of the parent was €182 million against €138 million a year ago. Diluted earnings per share were €0.34 against €0.26 a year ago. EBITDA was €346 million against €311 million a year ago. Return on equity was 9.7% compared to 7.5% a year ago. Capital expenditure was €103 million compared to €83 million a year ago. Sales decreased mainly due to lower deliveries at UPM Paper ENA. The EBITDA improvement was to a large extent driven by the ongoing profit improvement programme.
For the nine months, the company reported sales of €7,337 million against €7,466 million a year ago. Operating profit was €603 million against €414 million a year ago. Profit before tax was €610 million against €360 million a year ago. Profit attributable to owners of the parent was €504 million against €299 million a year ago. Diluted earnings per share were €0.95 against €0.57 a year ago. EBITDA was €957 million against €853 million a year ago. The increase was to a large extent driven by the ongoing profit improvement programme. Return on equity was 8.9% compared to 5.4% a year ago. Net cash generated from operating activities was €779 million compared to €473 million a year ago. Capital expenditure was €275 million compared to €246 million a year ago. Sales decreased mainly due to lower deliveries at UPM Paper ENA. Net debt decreased to €2,726 million.
The company expects capital expenditure for 2014 to be approximately €450 million.
Tieto Corporation and UPM Agrees to Expand its Partnership in the Application Management Services Area
Sep 4 14
Tieto Corporation and UPM have agreed to expand their partnership in the application management services area. UPM will outsource and consolidate these services for certain business areas and functions to one partner. The three-year agreement with two optional years has significant contract value to Tieto. Tieto is already the biggest provider of application and integration services for UPM and the new agreement will further strengthen the partnership. As part of the agreement, 47 employees from UPM's IT Service Centres in Changshu, China, in Tampere, Finland and in Krakow, Poland, who are in scope of the outsourced operations, are planned to be transferred to Tieto to be established as existing employees or according to local legislation. The partnership with Tieto brings improved scalability, flexibility, predictability and cost efficiency of IT services to UPM. Furthermore, the agreement will contribute to continuous service improvement and service innovations.
Four Bidders Reportedly Interested In Burgo
Aug 22 14
At least four bidders are interested in Burgo Group S.p.A. or some of its assets, MF-Milano Finanza reported without citing sources. Lecta S.A., Favini Spa, UPM-Kymmene Oyj (HLSE:UPM1V) and Heinzel Holding GmbH have expressed interest in Burgo, MF said. The paper also added that the bidders are proposing various ways of integration or asset acquisitions. Burgo is undergoing a restructuring process and is negotiating with creditor banks how to tackle its debt of more than €1 billion. As part of the restructuring, Burgo's advisers have sounded out possible buyers of assets or of the entire group, it said. Lecta is said to be interested in a merger whereas Favini would possibly look for a merger only after it lists its shares on the market. UPM, on the other hand, is said to be seeking an investor for an investment vehicle in which it will transfer the paper-making businesses of the two companies. Heizel is only interested in Burgo's paper mill in Ardennes in Belgium and in the group's distribution unit Burgo Distribuzione, MF said.
UPM-Kymmene Oyj Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Provides CapEx Guidance for the Full Year 2014
Aug 5 14
UPM-Kymmene Oyj reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported sales of €2,441 million against €2,520 million, EBITDA of €298 million against €258 million, operating profit of €176 million against €146 million, profit before tax of €159 million against €128 million, profit attributable to owners of the parent company of €129 million or €0.25 per diluted share against €114 million or €0.22 per diluted share, return on equity of 7.0% compared to 6.1% and operating cash flow per share of €0.40 compared to €0.16 in last year.
For the six months, the company reported the company reported sales of €4,922 million against €4,994 million, EBITDA of €611 million against €542 million, operating profit of €367 million against €227 million, profit before tax of €396 million against €194 million, profit attributable to owners of the parent company of €322 million or €0.61 per diluted share against €161 million or €0.31 per diluted share, return on equity of 8.7% compared to 4.3%, operating cash flow per share of €0.90 compared to €0.35, net cash generated from operating activities of €479 million against €187 million and capital expenditure of €174 million against €167 million in last year. In the first six months, operating cash flow was €479 million, which is €292 million more than last year. Net debt was almost €600 million lower than at the end of same period last year.
The company estimate for 2014 total CapEx is €450 million.