UPM-Kymmene Q2 sales fell 8% to €2.33B, missing estimates, as European paper demand and biofuels dragged. CEO says H2 should improve on cost cuts and seasonality.
Alpha Score of 44 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
UPM-Kymmene reported an 8% drop in second-quarter sales to €2.33 billion, missing the €2.43 billion consensus estimate, as weak demand in European paper markets and lower biofuels prices dragged on results.
Comparable EBIT fell 22% to €232 million, also short of the €290 million analysts expected, according to company data. The pulp and paper division saw operating profit shrink by roughly a third from the year-ago quarter, while the biofuels unit swung to a loss.
CEO Massimo Reynaudo said the company is “not satisfied with the result” and pointed to a weak economy and slow recovery in Europe as the main headwinds. He also said the European paper market remains structurally challenged.
UPM kept its full-year outlook unchanged, expecting comparable EBIT in the second half to improve from the first six months, driven by seasonal demand and cost savings. The company did not give a specific numeric target.
The stock fell 3.2% in Helsinki morning trading.
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