In the fourth quarter of 2014, UPM registered a turnover of 2,531 million Euros, a figure 2% lower compared with the 2,588 million in the fourth quarter of 2013. Sales went down mainly because of fewer orders of UPM Paper ENA (that is, Europe and North America). The Ebitda was 330 million which represented an increase compared with last year’s result due, to a great extent, to the profit improvement programme put in place by the Group. And if prices of sales have had a clear negative impact on the outcome, that has been compensated for by a reduction in variable costs. The operating profit of the last quarter, excluding extraordinary items, was 230 million Euros, i.e. 9.1% of the turnover.
Sales for the whole of 2014 were 9,868 million Euros, a 2% lower turnover compared with that of 10,054 million in 2013. The fall in sales which contributed to this, has also been mainly because of UPM Paper ENA. The EBITDA, on the other hand, was 1,287 million, a growth compared with 1,155 million Euros the preceding year, thanks to the programme to increase profits in which the fixed costs were 60 million Euros lower.
The operating profit, excluding extraordinary items, was 847 million Euros, 8.6% of the turnover, whilst the profit before tax was 667 million Euros.
Calm outlook for 2015
The improved profitability reached in 2014 is, according to the Group’s estimates, destined to also increase in 2015. This increase is based on the 150 million euro profit improvement programme and is affected by the reduction in the price of paper and the sales price of electrical energy. The current weak euro and a lower oil price are also elements which are advantageous for the company’s profit.
|Upm 2014 fourth quarter|
|Upm 2014 financial year|
Values in million Euros.