(Reuters) - Finland's UPM-Kymmene on Thursday said it expected first-half operating profit to fall compared to the second half of 2023, after the pulp and paper maker's operating earnings came in above market expectations in the fourth quarter.
The UPM shares tumbled around 6% in early trading in Helsinki, while peer Stora Enso fell 5% after it announced further job cuts.
UPM said it expected demand for many of its products to improve over 2024 as customer destocking comes to an end. However, it warned that planned maintenance shutdowns would weigh on earnings in the first six months of the year.
Affected by low demand and suppressed pulp prices, forest industry companies have seen their results tumble over the past year, leading UPM and Stora Enso to cut jobs and close production sites.
UPM's comparable operating profit fell 51% to 323 million euros ($348 million) in the fourth quarter, beating analysts' estimate of 309.3 million euros, according to LSEG data.
($1 = 0.9270 euros)