Finland's UPM lowers 2024 outlook on weaker-than-expected demand
Adds share reaction, quote from company in paragraph 3, background in paragraphs 6-8
COPENHAGEN, Oct 16 (Reuters) -Finnish forestry group UPM UPM.HE on Wednesday cut its profit outlook for 2024, citing lower pulp prices and weaker-than-expected market demand in the second half of this year, sending the company's shares down 3%.
The group said its earnings had improved less than expected, adding that operating profit (EBIT) had increased by 32% in the third quarter to 291 million euros ($316.70 million) from a year ago.
"The weakened pulp market and the high wood cost in Finland had a negative impact on the UPM Fibres business," the company said in a statement.
UPM expects EBIT in the fourth quarter to be on a similar level or to increase from the 323 million euros that it posted in the fourth quarter last year, it said.
Meanwhile, comparable full-year 2024 EBIT is expected to be at a similar level to, or to rise from, the 1,013 million euros posted in 2023, while it had previously said it expected an increase.
UPM earlier this month announced it may cut up to 110 jobs in its fibres business in Finland to increase efficiency and maintain profitability.
In August, the group said it would curtail output at two of its pulp mills in Finland for about three weeks as of September in order to meet market conditions.
The company is expected to report full earnings for the third quarter on Oct. 29.
($1 = 0.9189 euros)
Reporting by Louise Breusch Rasmussen, editing by Terje Solsvik and Stine Jacobsen, Kirsten Donovan
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