MADISON — The parent company of Madison Paper Industries trimmed its profit outlook for this year after experiencing a continued low demand for pulp and fine paper.
The Finnish company, UPM-Kymmene Corporation, announced Friday its operating profit is expected to be lower than last year. Previously, the company’s 2011 operating profit was expected to improve from last year.
Also announcing third-quarter results, UPM said its pulp and fine paper deliveries in Europe during July, August and September were lower than expected.
But there was still a stable demand for publication papers, which is what Madison Paper produces. The local mill has about 215 workers and is one of Madison’s largest employers.
The company also said the integration of Myllykoski Corp. was proceeding well. UPM acquired Madison Paper’s former parent company, Myllykoski Corp., for $1.27 billion on Aug. 1 this year.
Shares in UPM, which is the world’s largest producer of magazine paper, fell 7.4 percent, the Reuters news agency reported. UPM and similar companies have faced problems with decreasing paper demand and overcapacity.
During the third quarter, UPM’s operating profit was about $190 million. Sales were about $3.6 billion. And earnings before interest and taxes were $458 million.
Erin Rhoda — 612-2368
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