upm-kymmene oyj (RPL) Snapshot

UPM-Kymmene Oyj and Renmatix, Inc. have entered into a non-exclusive joint development agreement (JDA) in the area of biochemicals. Under terms of the JDA both companies will further develop Renmatix's water-based Plantrose(TM) process to convert woody biomass into low-cost sugar intermediates for subsequent downstream processing into biochemicals. Offering cost-competitive bio-alternatives for select petrochemicals on an industrial scale is the long term goal of this initiative.

UPM-Kymmene Oyj (HLSE:UPM1V) is looking for acquisitions. President of UPM's label business, Jussi Vanhanen said, “We see the global (market) growth at around 4% annually, and we will grow in general along with that. If we can find suitable acquisitions, the growth would be faster.” He added, “There are not very many companies that we would want to acquire, but of course we have an open mind (to deals), and we have been making a deal per year.”

UPM-Kymmene Oyj reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported sales of EUR 2,474 million compared to EUR 2,608 million reported a year ago. Operating profit was EUR 81 million compared to EUR 160 million reported a year ago. Profit before tax was EUR 66 million compared to EUR 146 million reported a year ago. Profit attributable to owners of the parent company was EUR 47 million or EUR 0.09 per diluted share compared to EUR 120 million or EUR 0.23 per diluted share reported a year ago. Net cash generated from operating activities was EUR 103 million compared to EUR 218 million reported a year ago. Capital expenditure was EUR 98 million compared to EUR 88 million reported a year ago. EBITDA was EUR 284 million compared to EUR 357 million reported a year ago. Return on equity was 2.5% compared to 5.0% reported a year ago. Return on equity, excluding special items was 5.1% compared to 4.9% reported a year ago.