UPM Plywood division reported 20% drop in EBITDA for the first quarter of 2016. EBITDA for Q1/2016 was €20million, against €25 million in Q1/2015. UPM's Plywood delivery volumes were lower than the high level last year and sales prices decreased slightly.
UPM Plywood's adjusted operating profit also dropped by €5 million from the same quarter last year, down to €14 million. Sales reached €110 million in Q1/2016 (Q1/2015: €119 million). Plywood deliveries were 189,000 cubic metres (Q1 2015: 199,000 m3).
In the quarter, UPM's Otepää mill expansion proceeded according to schedule with the first installations already taken into use. Also, Finnish birch mill competitiveness improvement programme proceeded according to plan, while production adjustments were carried out in Pellos spruce plywood mills to mitigate negative impact of low-priced imports.
For the weaker results in this quarter, UPM says that the plywood market balance was impacted by low-priced imports, particularly in the beginning of the quarter in some product segments. Also, UPM notices that the market environment improved gradually during the quarter in Europe and demand is estimated to have increased slightly from last year. Plywood demand grew in both industrial applications and construction related end-use segments.
For the overall results of the Group here
