UPM records goodwill impairment charge in Newsprint Division

Archive 10.9.2008 0:00 EEST

(UPM, Helsinki, 10 September 2008 at 09:35) – UPM will record an impairment charge of the Newsprint Division's goodwill in the third quarter. The Company's view of the newsprint market outlook has weakened.

UPM has carried out the testing of goodwill of the Newsprint according to IAS 36. Based on the outcome, UPM will record an impairment charge of approximately EUR 230 million from the Division's goodwill. The primary drivers for the impairment relate to lower-than-forecast realised newsprint market demand in Europe and continued overcapacity in Europe together with increased costs. Due to the impairment, deferred tax liabilities will be decreased by approximately EUR 28 million.

The total amount of the Newsprint Division's goodwill at the end of December 2007 was EUR 475 million.

For more information, please contact:
Mr Jyrki Salo, Executive Vice President and CFO, tel. +358 204 15 0011
Mr Olavi Kauppila, Senior Vice President, Investor Relations, tel. +358 204 15 0658

UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284