SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of March 2007
UPM-KYMMENE CORPORATION
(Translation of registrant’s name into English)
Eteläesplanadi 2
FIN-00130 Helsinki, Finland
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
UPM-Kymmene Corporation Stock Exchange Release March 27, 2007 at 15:00
President and CEO Jussi Pesonen discussed UPM’s ongoing year at the AGM Labelstock business to be established as Label Division
President and CEO Jussi Pesonen assessed UPM’s ongoing year in his review at the Annual General Meeting.
“In Europe, the good demand for paper has continued, and we expect that deliveries for the full year will improve from last year.”
“We have achieved price increases in newsprint, uncoated fine papers and some speciality grades. The prices of coated fine papers have remained stable. In the current market situation, it has not been possible to raise magazine paper prices, and their price development has been clearly disappointing,” Pesonen said.
At the Annual General Meeting UPM announced that its labelstock business has been established as a separate division as of the beginning of 2007. The new Label Division consists of UPM Raflatac self-adhesive labelstock and RFID (Radio Frequency Identification) tags.
“Label business is part of UPM’s core business, and it is a strategic growth area for the company. We have invested strongly in this business in recent years, and its annual sales and result have developed favourably. Reporting the business separately will enhance transparency and facilitate the evaluation of business development for the owners,” Pesonen said.
In this connection, the Converting Division will be discontinued and the reporting of Walki Wisa will be included in other operations. In February, UPM announced that it has signed an agreement to sell Walki Wisa to funds managed by the Finnish private equity investment company CapMan. The deal is estimated to be completed during the second quarter of 2007.
The key figures for 2005 and 2006 for the Label Division and the reorganised other operations are included in the enclosed appendix.
The CEO’s address to the AGM is available in full at www.upm-kymmene.fi > Investor Relations.
UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Corporate Communications
DISTRIBUTION
Helsinki Exchanges
New York Stock Exchange
Main media
www.upm-kymmene.com
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Appendix
Label Division
€m | Q4/2006 | Q3/2006 | Q2/2006 | Q1/2006 | Q1-Q4/2006 | Q1-Q4/2005 | ||||||
Sales | 251 | 240 | 245 | 251 | 987 | 860 | ||||||
EBITDA | 25 | 20 | 24 | 24 | 93 | 71 | ||||||
% of sales | 9.9 | 8.4 | 9.6 | 9.7 | 9.4 | 8.2 | ||||||
Depreciation, amortisation and impairment charges | -8 | -9 | -7 | -8 | -32 | -30 | ||||||
Operating profit | 17 | 11 | 16 | 17 | 61 | 41 | ||||||
% of sales | 6.6 | 4.8 | 6.5 | 6.6 | 6.1 | 4.8 | ||||||
Special items | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Operating profit excl. special items | 17 | 11 | 16 | 17 | 61 | 41 | ||||||
% of sales | 6.6 | 4.8 | 6.5 | 6.6 | 6.1 | 4.8 | ||||||
Capital employed, 31 December | 399 | 373 | ||||||||||
Capital employed, average | 388 | 368 | ||||||||||
Return on capital employed, % | 15.6 | 11.1 | ||||||||||
Capital expenditure and acquisitions | 64 | 39 | ||||||||||
Personnel on 31 December | 2585 | 2424 | ||||||||||
Other Operations (including associated companies) | ||||||||||||
€m | Q4/2006 | Q3/2006 | Q2/2006 | Q1/2006 | Q1-Q4/2006 | Q1-Q4/2005 2) | ||||||
Sales 1) | 225 | 206 | 189 | 204 | 824 | 970 | ||||||
EBITDA | 68 | 27 | 33 | 73 | 201 | 178 | ||||||
Depreciation, amortisation and impairment charges | -9 | -9 | -8 | -6 | -32 | -37 | ||||||
Operating profit | ||||||||||||
Forestry | 23 | 20 | -82 | 20 | -19 | 64 | ||||||
Energy Department, Finland | 36 | 0 | 18 | 40 | 94 | 135 | ||||||
Associated companies | 9 | 17 | 10 | 25 | 61 | 41 | ||||||
Other and eliminations | -11 | -18 | 27 | -3 | -5 | -55 | ||||||
Operating profit, total | 57 | 19 | -27 | 82 | 131 | 185 | ||||||
Special items | -6 | -2 | 41 | -5 | 28 | -21 | ||||||
Operating profit excl. special items | 63 | 21 | -68 | 87 | 103 | 206 | ||||||
Capital employed, 31 December | 3386 | 3594 | ||||||||||
Capital expenditure and acquisitions | 107 | 82 | ||||||||||
Personnel on 31 December | 4176 | 4526 | ||||||||||
| 1) | Sales include only sales outside the Group. |
| 2) | Includes also the Loparex Group, which was sold in August 2005. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: March 27, 2007 | UPM-KYMMENE CORPORATION | |||
| By: | /s/ Jyrki Salo | |||
| Jyrki Salo | ||||
| Executive Vice President and CFO | ||||
| By: | /s/ Olavi Kauppila | |||
| Olavi Kauppila | ||||
| Senior Vice President, Investor Relations | ||||
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