UPM’s sales for the third quarter were 2,603 million Euros, 13 percent higher than the 2,312 million Euros sales in the third quarter of 2010. Sales increased mainly due to the inclusion of the acquired Myllykoski and Rhein Papier as of 1 August.In addition, sales prices increased, particularly in business area Paper.However, UPM’s delivery volumes fell during the third quarter, while variable costs reached a peak level.“These coinciding events impacted on our operating profit. Particularly the lower pulp and fine paper deliveries in Europe had an adverse impact on the operating profit,” said Jussi Pesonen, CEO of UPM.UPM’s operating result for the third quarter was -159 million Euros (238). Excluding special items the operating result was 136 million Euros (204). UPM’s net result for the quarter was -109 million Euros (178). Operating cash flow continued solid at 285 million Euros.“On a positive note, our strong performance in terms of operating cash flow continued. The Myllykoski integration proceeded well, and the magazine paper business showed solid performance. The demand for publication papers was stable and, during the quarter, we were able to increase paper prices. However, this was not sufficient to offset the rise in variable costs during the third quarter,” Jussi Pesonen said.”While the cost level still remains high, we estimate that we have now reached the peak, and variable costs are expected to start gradually decreasing,” he added.The economic outlook has turned weaker during the second half of the year. As a result, demand for UPM’s products for the rest of the year is lower than earlier anticipated.”We are prepared for a heavy winter. However, UPM is in a much better position to respond to the rough economic climate compared to 2008,” Jussi Pesonen said. /AA