UPM's non-recurring items in July–September 2006

Archive 9.10.2006 0:00 EEST

(UPM, Helsinki, October 9, 2006) – UPM will book an impairment charge of approx. EUR 115 million, net of taxes approx. EUR 80 million, relating to the production facilities at Miramichi magazine paper mill in Canada. The remaining carrying value of property, plant, equipment and intangible assets is approx. EUR 20 million. The cash flow of Miramichi mill has remained weak especially due to the strengthened Canadian dollar in relation to the US dollar.

Relating to the ongoing extensive profit improvement programme, UPM books a provision for personnel expenses of approx. EUR 12 million and an impairment charge of EUR 5 million in the third quarter of 2006. In March 2006, UPM announced that the programme related provision for personnel expenses for the year 2006 is approx. EUR 65 million, of which EUR 37 million was booked in the second quarter of 2006. The programme is proceeding according to the plan.

The results of the third quarter of 2006 include a tax-free capital gain of approx. EUR 90 million from the sale of Puukeskus as announced in June.

For further information, please contact:
Mr Olavi Kauppila, Senior Vice President, Investor Relations, tel. +358 204 15 0658