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Finland's UPM eyes Uruguay boost after Q3 profit tumble

Credit: REUTERS/STAFF

Finnish pulp and paper maker UPM said on Thursday its Uruguay pulp mill investment would drive significant future earnings growth, while reporting a sharp fall in third-quarter profit.

HELSINKI, Oct 24 (Reuters) - Finnish pulp and paper maker UPM UPM.HE said on Thursday its Uruguay pulp mill investment would drive significant future earnings growth, while reporting a sharp fall in third-quarter profit.

"The $2.7 million investment in a highly competitive 2.1 million tonne eucalyptus pulp mill will raise UPM's pulp capacity by more than 50% and significantly contribute to future earnings," the company said in a statement.

In July UPM decided to build a pulp plant in Uruguay and invest around $3 billion.

Operating profit for the July-September quarter fell 24% to 316 million euros ($352 million) and came in below the 325 million expected by analysts in a Refinitiv poll.

Sales fell 6% to 2.49 billion euros mainly due to record-high pulp prices a year earlier and fell short of the 2.55 billion expected by analysts on average.

($1 = 0.8978 euros)

(Reporting by Anne Kauranen)

((anne.kauranen@thomsonreuters.com))

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