The figure is up on a loss of €90m recorded at the same time a year earlier. However, for the first three quarters it recorded a pre-tax loss of €124m. 

Sales for the third quarter of 2009 were €1.9bn, down 19% on the €2.3bn recorded at the same time a year earlier.

The main reason for weaker profitability over the first three quarters was "significantly lower deliveries and sales prices" in most of UPM's business areas.

In response to lower demand, the business has used temporary capacity shutdowns to adjust production.

It said that such cost savings measures and temporary lay-offs have decreased its fixed costs by €240m in comparison to the same period last year.

Jussi Pesonen, UPM's president and chief executive, said: "In paper, we reported a good result considering the extremely tough circumstances.

"We adjusted production in Europe to weak demand and saved costs without losing production efficiency."

Economic activity has "clearly improved", according to the company, but the recession continues to have an effect on consumer demand and advertising expenditure in print media.

Pesonen said: "Our demand and pricing outlook remains weak and we will continue to curtail production in most of our businesses."

He also revealed that the company aimed to reposition itself as a "bio and forest industry company", under the title UPM – The Biofore Company.

"Bio is a prefix that stands for sustainable solutions and good environmental performance. It is being used in many of the company’s developments," he added.