Finland's UPM says comparable profit grew in Q1, raises guidance

It said in a statement its comparable operating profit rose to 279 million euros ($334 million) in the first quarter from 252 million a year earlier, according to a preliminary figures. "Pulp demand has continued to be good and pulp prices have increased faster than expected.

Finnish forestry products group UPM said on Thursday its comparable operating profit grew in the first quarter on the back of rising pulp prices as it raised its profit guidance for the first half of 2021. It said in a statement its comparable operating profit rose to 279 million euros ($334 million) in the first quarter from 252 million a year earlier, according to a preliminary figures.

"Pulp demand has continued to be good and pulp prices have increased faster than expected. At the same time, strong markets have continued for labeling materials, specialty papers and energy," it said. "Demand and pricing for communication papers have materialised as expected, decreasing from the comparison periods."

Shares in UPM, whose full quarterly earnings report is scheduled for April 27, were up over 4% at 1515 GMT. UPM said it now expected comparable operating profits to be higher in the first half of the year than in the correspondent period a year earlier, and full-year profits to be higher than in 2020. Its previous guidance had been for a lower first-half profit compared with a year earlier.

($1 = 0.8352 euros)

Also Read: Finnish wood pulp giant Stora Enso to leave viscose market after Xinjiang link disclosed