UPM-Kymmene Oyj. plans restructuring and permanent closures to ensure competitiveness of its Plywood and Timber operations in Finlandosts are estimated to be approximately EUR 44 million including impairment charges of approximately EUR 11 million. In addition, UPM plans to invest approximately EUR 25 million in the expansion of the Savonlinna plywood mill and the development of the production in the Kaukas sawmill and the Aureskoski further processing mill. If the plans materialise, the Savonlinna plywood mill will become the most efficient birch plywood unit with an annual production capacity of 120,000 cubic metres of high quality birch plywood. With the investment UPM strives to ensure its position as the plywood supplier in Europe. The planned investments in the Kaukas sawmill and Aureskoski further processing mill would strengthen the cost competitiveness of the Timber business and position in the European markets.

UPM-Kymmene Oyj. announced earnings results for the third quarter ended September 2009. For the quarter, the company reported earnings per share were EUR 0.08 against loss per share of EUR 0.17 in 2008 and excluding special items earnings per share was EUR 0.14 against EUR 0.25 per share for the same period last year. Operating profit excluding special items was EUR 131 million compared to EUR 216 million for the same period last year. The company reported operating profit was EUR 96 million compared to loss of EUR 40 million for the same period last year. Strong cash flow due to continued actions to preserve cash EUR 721 million reduction in net debt from last year.

UPM-Kymmene Oyj. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. Net profit attributable to shareholder was EUR 40 million against loss attributable to shareholder of EUR 86 million a year ago. Profit before tax was EUR 64 million on net sales of EUR 1,913 million against loss before tax of EUR 90 million on net sales of EUR 2,358 million a year ago. For the nine months period, net cash generated from operating activities of EUR 889 million against EUR 271 million a year ago. Operating cash flow per share was EUR 1.71 against EUR 0.52 reported a year ago. Capital expenditure was EUR 139 million against EUR 421 million a year ago. Book value at end of period was EUR 5,253 against EUR 6,012 reported a year ago.