Finnish forest company UPM reported a sharp drop in third-quarter profits. Comparable operating profit fell 47% to 153 million euros from the same period last year. Revenue also declined year-over-year.
CEO Massimo Reynaudo said consumer demand remained weak and uncertainty continues. He made these comments in the company's quarterly review.
Some business areas showed improvement compared to last year. The advanced materials and carbon reduction solutions divisions performed better.
Reynaudo noted particular challenges in pulp and graphic paper operations. These businesses suffered from exceptional market instability. This instability negatively impacted UPM's overall results.
The company described its outlook as uncertain. Major uncertainties affecting earnings include selling prices and delivery volumes. Production input costs and currency exchange rates also create challenges.
Most of these factors depend on general economic development, according to the quarterly report.
UPM is one of Finland's largest forest industry companies with global operations. The forest sector plays a crucial role in Nordic economies. Current market conditions reflect broader economic pressures affecting European manufacturers.
The results show how even established Nordic companies face challenges when consumer spending weakens and market conditions fluctuate unexpectedly.