|Bid||0.00 x N/A|
|Ask||0.00 x N/A|
|Day's Range||23.32 - 23.32|
|52 Week Range||20.65 - 30.58|
|Beta (5Y Monthly)||0.85|
|PE Ratio (TTM)||19.50|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Moody's Investors Service, ("Moody's") assigned a Baa1 rating to the proposed issuance of benchmark size senior unsecured notes due 2028 by UPM-Kymmene ("UPM" or "the company"). Apart from having leading positions in major graphic paper grades, such as newsprint, magazine and fine paper, UPM is active in pulp and energy production, specialty paper, label materials and wood products.
UPM-Kymmene Corporation Half-Year Financial Report 23 July 2020 at 09:20 EETUPM Half-Year Financial Report 2020: Q2 impacted by lockdowns, transformative growth projects on trackQ2 2020 highlights * Sales decreased by 20% to EUR 2,077 million (2,605 million in Q2 2019) due to lower deliveries of graphic papers and lower pulp and paper sales prices * Comparable EBIT decreased by 41% to EUR 203 million (345 million), and was 9.8% (13.2%) of sales * The COVID-19 lockdowns significantly decreased demand for graphic papers * Demand for labelling materials and specialty papers increased during the lockdowns * Operating cash flow was EUR 156 million (436 million) * Closures of UPM Chapelle paper mill and UPM Jyväskylä plywood millH1 2020 highlights * Sales decreased by 18% to EUR 4,364 million (5,298 million in H1 2019) due to lower deliveries of graphic papers and lower pulp and paper sales prices * Comparable EBIT decreased by 33% to EUR 482 million (719 million), and was 11.0% (13.6%) of sales * UPM's transformative pulp project in Uruguay and biochemicals project in Germany are well on track with the planned start-up timeline * Operating cash flow was EUR 293 million (756 million) * Net debt decreased to EUR 301 million (366 million) * Cash funds and unused committed credit facilities totalled EUR 2.0 billion at the end of JuneKey figures Q2/2020Q2/2019Q1/2020Q1–Q2/2020Q1–Q2/2019Q1–Q4/2019 Sales, EURm2,077 2,605 2,287 4,364 5,298 10,238 Comparable EBITDA, EURm320 466 398 719 954 1,851 % of sales15.4 17.9 17.4 16.5 18.0 18.1 Operating profit, EURm148 319 243 391 692 1,344 Comparable EBIT, EURm203 345 279 482 719 1,404 % of sales9.8 13.2 12.2 11.0 13.6 13.7 Profit before tax, EURm138 300 240 378 664 1,307 Comparable profit before tax, EURm193 325 276 469 691 1,367 Profit for the period, EURm103 245 192 295 549 1,073 Comparable profit for the period, EURm157 271 231 388 576 1,119 Earnings per share (EPS), EUR0.19 0.46 0.36 0.55 1.03 1.99 Comparable EPS, EUR0.29 0.51 0.43 0.72 1.08 2.07 Return on equity (ROE), %4.3 10.0 7.7 6.0 11.4 10.7 Comparable ROE, %6.6 11.1 9.3 7.9 11.9 11.2 Return on capital employed (ROCE), %5.4 11.2 8.9 7.2 12.8 12.3 Comparable ROCE, %7.5 12.2 10.2 8.8 13.3 12.8 Operating cash flow, EURm156 436 137 293 756 1,847 Operating cash flow per share, EUR0.29 0.82 0.26 0.55 1.42 3.46 Equity per share at the end of period, EUR17.50 17.91 17.90 17.50 17.91 18.87 Capital employed at the end of period, EURm10,767 10,820 11,009 10,767 10,820 11,474 Net debt at the end of period, EURm301 366 -405 301 366 -453 Net debt to EBITDA (last 12 months)0.19 0.19 -0.23 0.19 0.19 -0.24 Personnel at the end of period19,029 19,760 18,573 19,029 19,760 18,742 Jussi Pesonen, President and CEO, comments on the Q2 2020 results:"In the second quarter of 2020 people and businesses around the world felt the impact of the COVID-19 pandemic and the related lockdowns. For UPM the impact was divided. Demand for graphic papers seriously suffered as a result of lockdowns, whereas labels and specialty papers saw strong demand and delivered excellent results. Our financial standing remains strong, and our strategic growth projects continue as planned.We have taken proactive and extensive precautions to ensure the safety of our employees and continuity of our operations. Consequently, few UPM employees have been infected and we have been able to serve our customers without interruption. This is a great achievement and has enabled satisfactory results in highly exceptional circumstances.Our sales decreased by 20% to EUR 2,077 million and comparable EBIT by 41% to EUR 203 million. Operating cash flow was EUR 156 million. Net debt decreased from last year to EUR 301 million and liquidity totalling EUR 2.0 billion.The lockdown of businesses, offices and schools caused a drastic decline in printed advertising and use of office papers. In Europe, Q2 demand for graphic papers decreased by 32% from last year. We achieved significant savings in fixed costs, but this could not offset the headwind from the markets. UPM Communication Papers’ quarterly EBIT was negative for the first time in five years.At the same time lockdowns had a positive impact on some of UPM’s businesses. UPM Raflatac and UPM Specialty Papers benefited from strong demand for daily consumer goods and growth in e-commerce, increasing the need for labelling and packaging solutions. In Europe, Q2 demand for self-adhesive labels grew by 10% compared to last year. The favourable markets combined with long-term efforts to improve margins resulted in excellent profits in both business areas.In UPM Biorefining, pulp deliveries were strong in Q2. Due to the pandemic, maintenance shutdowns were postponed until Q4 and our pulp mills were running at full capacity. However, prices remain low and the results leave room for improvement. UPM Energy achieved good results despite lower prices in highly volatile markets. UPM Plywood had a relatively solid quarter, but the market for birch plywood remains weak.In the coming quarters, we will focus on two main topics. First, we will ensure good performance in all our businesses through these exceptional times. Second, we will implement our transformative growth projects in Uruguay and Germany with determination.During the current uncertainty, we have adjusted our operations using measures such as temporary lay-offs and shift arrangements. In addition, we have taken action and will continue to take action to ensure the profitability and competitiveness of our operations both during the current downturn and in the long term. Last week we announced the closure of UPM Chapelle mill, which will reduce our newsprint capacity by 240,000 tonnes. This week we decided to permanently close the UPM Jyväskylä plywood mill.I am happy to say that our growth projects are well on track. Unlike many Latin American countries, Uruguay has taken stringent COVID-19 measures and managed to keep the overall level of infections very low throughout the country. This, combined with UPM’s own safety processes, has kept our sites in the country free of COVID-19 cases. In Paso de los Toros, the mill foundation works have started and housing is getting ready to accommodate the increasing number of workers entering the site during the autumn. In the biochemicals project in Germany, the planning has proceeded well, and we are starting work on site at Leuna.UPM’s value creation today and in the future is based on offering sustainable products and solutions to consumers and businesses. We are confident with our Biofore strategy and committed to growing businesses for a future beyond fossils."Outlook for 2020The COVID-19 pandemic, the related containment measures and the economic downturn continue to cause high uncertainty for H2 2020.The COVID-19-lockdowns had a significant negative impact on graphic paper demand. The lockdowns also supported the strong demand for self-adhesive labelling materials and specialty papers in H1 2020. There are early signs of some normalisation of these temporary demand impacts, both positive and negative. However, the development is uncertain and likely to be gradual, depending on the easing of lockdowns and changes in consumer reactions.Demand for most UPM products is influenced by overall economic activity and hence, also depends on the shape and rate of the economic recovery.Paper prices are expected to decrease moderately in H2 2020 compared with H1 2020. Pulp sales prices are starting H2 2020 at a low level.There will be more maintenance activity in H2 2020 than in H1 2020, particularly as the two pulp mill maintenance shutdowns were rescheduled from Q2 2020 to Q4 2020.UPM will continue to implement measures to decrease fixed and variable costs.UPM’s comparable EBIT is expected to be significantly lower in 2020 than in 2019.Invitation to UPM’s webcast and press conference on half-year financial report 2020A webcast and a conference call for analysts and investors in English language begins at 13:15 EET. UPM’s financial results will be presented by the President and CEO Jussi Pesonen and CFO Tapio Korpeinen. All participants can view the webcast online at www.upm.com or through this link, but participants who wish to ask questions must attend the conference call by dialling a number in the list below:Conference call title: UPM Interim Report for January – June 2020 International telephone numbers:Australia Toll: +61 284058549 Austria Toll: +43 19287907 Belgium Toll: +32 24035814 Denmark Toll: +45 35445577 Finland Toll: +358 981710310 France Toll: +33 170750711 Germany Toll: +49 6913803430 Hong Kong Toll: +852 30600225 India Toll: +91 2271279610 Ireland Toll: +353 14311252 Italy Toll: +39 0236013821 Japan Toll: +81 344556492 Netherlands Toll: +31 207095189 Norway Toll: +47 23500243 Singapore Toll: +65 64298349 Spain Toll: +34 935472900 Sweden Toll: +46 856642651 Switzerland Toll: +41 225809034 United Kingdom Toll: +44 3333000804 United States Toll: +1 6319131422PIN code: 86281598We recommend that participants dial in 5-10 minutes prior to ensure a timely start of the webcast. The webcast will be available at www.upm.com for 12 months after the call.Later in the afternoon, at 14:30 EET, CEO Jussi Pesonen will present the results in a press conference held in Finnish language at the UPM Group Head Office (The Biofore House) in Helsinki, Alvar Aallon katu 1. The press conference can also be attended online by registering through this link. Only the registered will receive the link to the press conference. Questions can be asked via live chat.**It should be noted that certain statements herein, which are not historical facts, including, without limitation, those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by "believes", "expects", "anticipates", "foresees", or similar expressions, are forward-looking statements. Since these statements are based on current plans, estimates and projections, they involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. Such factors include, but are not limited to: (1) operating factors such as continued success of manufacturing activities and the achievement of efficiencies therein including the availability and cost of production inputs, continued success of product development, acceptance of new products or services by the Group's targeted customers, success of the existing and future collaboration arrangements, changes in business strategy or development plans or targets, changes in the degree of protection created by the Group's patents and other intellectual property rights, the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for the Group's products and the pricing pressures thereto, financial condition of the customers and the competitors of the Group, the potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in the Group's principal geographic markets or fluctuations in exchange and interest rates. The main earnings sensitivities and the group’s cost structure are presented on pages 160–161 of the 2019 Annual Report. Risks and opportunities are discussed on pages 28–29 and 129-131, and risk management is presented on pages 189–195 of the report.**UPM-Kymmene Corporation Pirkko Harrela Executive Vice President, Stakeholder RelationsUPM, Media Relations Mon-Fri 9:00-16:00 EET tel. +358 40 588 3284 firstname.lastname@example.orgUPM We deliver renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. As the industry leader in responsibility we are committed to the UN Business Ambition for 1.5°C and the science-based targets to mitigate climate change. We employ 18,700 people worldwide and our annual sales are approximately EUR 10.2 billion. Our shares are listed on Nasdaq Helsinki Ltd. UPM Biofore – Beyond fossils. www.upm.comFollow UPM on Twitter | LinkedIn | Facebook | YouTube | Instagram | UPM biofore beyondfossilsUPM presents certain measures of performance, financial position and cash flows, which are alternative performance measures in accordance with the guidance issued by the European Securities and Markets Authority (ESMA). The definitions of alternative performance measures are presented in notes to the consolidated financial statements in UPM Annual Report.Attachment * UPM Half year financial report 2020
Last week, you might have seen that UPM-Kymmene Oyj (HEL:UPM) released its quarterly result to the market. The early...