The company posted a €2.1bn (£1.8bn) turnover for the fourth quarter of 2009, compared with €2.3bn for the same period a year earlier.

Pre-tax profit for the last quarter was €311m, up considerably from a loss of €360m the same time a year earlier.

In its forecast for 2010, the company said it expects recovery in its main markets to be slow.

"Demand for consumer goods is forecast to improve, but advertising expenditure in print media and demand for graphic papers is expected to improve with some delay," said UPM.

"Paper demand in Europe is forecast to increase from 2009 and thus UPM's paper deliveries for 2010 are expected to be higher than last year."

In Europe, it said there was "a severe price pressure", especially for newsprint deliveries. However, the price outlook for fine and speciality papers was more positive due to a better market balance and increased cost of chemical pulp.

In December 2009, UPM invested £17m in a materials recovery facility at its Shotton paper mill in North Wales, which Unite said was "to be commended".

Earlier in the year, the company said it would renew its paper business supply chain in response to the changing needs of the sector.