3 July 2006 — Helsinki (FIN): UPM has said its profitability improvement programme is going ahead as planned but that due to various charges its Q2 earnings would be negative.
UPM said that costs associated with the plan would see a Q2 charge of €123 million ($157 million). In addition, the change in value of forest assets will also reduce the quarter’s results by €110 million with production line closures resulting in impairment charges of €130 million. The sale of the company’s head office real estate will produce a capital gain of around €37 million.
