Q1/2018 (year-on-year) · Sales increased by 3.3% to EUR 2 579 (2 497) million, primarily due to favourable prices and the ramp-up of strategic investments. · Operational EBIT increased 72% to EUR 369 (215) million as announced on 13 April, mainly due to favourable prices and mix optimisation combined with continued successful ramp-ups of the strategic investments. · The operational EBIT margin was 14.3% (8.6%), the highest for any quarter since 2001. · EPS was EUR 0.35 (0.14). EPS excl. IAC increased to EUR 0.35 (0.17). · Balance sheet strengthened further and net debt was reduced by EUR 485 million; the net debt to operational EBITDA ratio improved to 1.3 (1.9). Click Read More below for additional information.

The conciliator has announced that the conciliation between UPM Communication Papers and Paperworkers’ Union has been interrupted, as the parties’ views are still far apart. At the same time, the conciliator announced that the conciliation in UPM Specialty Papers, UPM Raflatac and UPM Biofuels continues. For UPM Pulp the conciliator has already submitted a settlement proposal. Unlike before, the Paperworkers’ Union is now ready to finalise agreements for UPM’s different businesses non-simultaneously. This means that UPM Specialty Papers, UPM Raflatac, and UPM Biofuels prepare to find solutions on the same schedule as UPM Pulp, which is expected to state its position on the settlement proposal by April 14, 2022. Next meetings between UPM Communication Papers and the Paperworkers’ Union have not been scheduled.

Flambeau River Paper announced the shutdown of its #3 paper machine to be effective immediately. #3 paper machine primarily produces commodity white papers and has been impacted by the ongoing and unprecedented rise in pulp costs coupled with an in-elasticity of commodity paper price. Flambeau River Papers’ #1 and #2 paper machines along with the Flambeau pulp mill, woodyard and utilities will continue to operate uninterrupted on a 24 hour, 7 day a week schedule. It is important to point out that PM 1 and PM 2 produce primarily specialty and value-added papers. The size and capabilities of these two paper machines, along with integrated nature of the mill, make them competitive and well suited for continued success in these markets. Over the last five years the mill has worked hard and qualified propriety specialty papers on these machines. Also manufactured on PM 1 and PM 2 are Flambeau’s other value-added papers such as Torchglow and Glacier Opaque branded papers, custom FDA compliant papers, fluorescent colored papers, wet-strength papers, saturating base stocks, deeply colored papers, watercolor papers, book papers, endleaf papers, lightweight offset papers, converting and drawing stocks. Paper grades historically produced on PM 3 such as Offset Papers and Laser Bond papers will not be part of the productive capacity of FRP as we proceed forward. We will work in concert with you and communicate the status of pending orders and shipments.