UPM’s sales totaled 8,924 million Euros 2010 (7,719 million 2009). Earnings per share grew to 1.08 Euro (0.33), excluding special items to 0.99 (0.11). UPM’s operating profit excluding special items was 731 million Euros (270 million), and the company’s net debt was down by 444 million Euros during 2010.The Board’s proposal for dividend per share is 0.55 Euro (0.45).“2010 was characterized by recovering demand and global commodity price inflation. With higher production volumes we were able to take full benefit of our early efficiency improvements and bring profitability back to pre-recession level,” UPM’s CEO, Jussi Pesonen, said.“The profitability in the fourth quarter was burdened by higher than average maintenance and other costs but showed the best cash flow for the whole year,” Pesonen said.UPM’s paper deliveries increased during 2010, but the paper business made an operating loss due to significantly higher fiber costs. According to Jussi Pesonen, the European paper business needs consolidation to be able to improve its cost structure.“Therefore,” Pesonen underlined, “the Myllykoski acquisition is a major strategic opportunity for our company.”UPM’s delivery volumes are expected to either remain stable or increase in 2011. Variable cost inflation is expected to moderate from the pace seen in 2010. Sales prices of UPM's products are also expected to increase, especially in the paper business, where the average price is expected to increase by about six percent, according to Jussi Pesonen.UPM’s operating profit, excluding special items, for 2011 is expected to improve from last year, the company writes in its year-end report.