UPM's operating profit, excluding special items, was 116 million Euros in the first quarter of 2010, compared to a loss of 78 million the corresponding period last year. Operating cash flow was 209 million Euros (274 million).UPM also reports positive development in delivery volumes in all businesses segments, and sales grew by ten percent."UPM's operating profit improved clearly from the same period last year, due to higher delivery volumes across all of our businesses and lower raw material costs," said Jussi Pesonen, CEO of UPM. "Our first quarter sales increased by ten percent from the same period last year. What is especially positive is that despite the clear increase of delivery volumes, our fixed costs remained the same."However, Pesonen underlined that UPM's profitability continues to be unsatisfactory, and efforts to improve the situation will continue.In Paper, delivery volumes improved especially in Asia and North America. The Paper business made an operating loss with average paper prices decreasing and fiber costs increasing from the same period last year."However, we succeeded in increasing the prices of fine and speciality papers, due to good demand," Jussi Pesonen said."The results of Energy and Pulp business areas improved ,as we were able to take advantage of the good market situation. Also Label business continued the positive development which started last summer," Pesonen continued.