UPM raises its earnings outlook for H1 2022 and for the full year 2022. The company now expects its comparable EBIT to increase both in H1 2022 from H1 2021, and in the full year 2022 from 2021. Earlier, the company expected its comparable EBIT in H1 2022 to be on similar level compared to H1 2021, while comparable EBIT in the full year 2022 was expected to be on similar level or higher than in 2021. UPM's comparable EBIT totalled EUR 586 million in H1 2021, and EUR 1,471 million in the full-year 2021.

Strong market conditions have continued in all UPM businesses. The company has succeeded well in managing margins in the challenging cost environment. Furthermore, production ramp-up succeeded well at the company's Finnish mills following the signing of the business-specific collective labour agreements in April, and customer deliveries resumed rapidly.

Significant uncertainties remain in the outlook for 2022, related to the war in Ukraine, the ongoing pandemic, growth in the European and global economy, the energy market situation in Europe and the start-up of the OL3 power plant, and the tight raw material and logistics markets.

UPM will publish its Half-Year Financial Report 2022 on Thursday 21 July 2022.

For reference, UPM's previous outlook for 2022 was:

"UPM's earnings recovered to the strong pre-pandemic level in 2021 and overall, 2022 is expected to be another good year for the company.

There are significant uncertainties in the outlook for 2022, related to the war in Ukraine, the ongoing pandemic, growth in the European and global economy, the energy market situation in Europe and the tight raw material and logistics markets.

Good demand is expected to continue for most UPM products in 2022. In the first half of the year, production and earnings are affected by the strike at the Finnish units of UPM Pulp, UPM Biofuels, UPM Raflatac, UPM Specialty Papers and UPM Communication Papers, and the two scheduled pulp mill maintenance shutdowns in Finland in Q2.

Sales prices and variable costs are expected to increase in most of UPM businesses in H1 2022. UPM will continue to manage margins with product pricing, optimising its product and market mix, efficient use of assets as well as by taking measures to improve variable and fixed cost efficiency.

UPM's comparable EBIT in H1 2022 is expected to be on similar level compared to H1 2021. Comparable EBIT in the full year 2022 is expected to be on similar level or higher than in 2021."