In a statement published today (14 June), UPM said it has raised its earnings outlook for both 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 €586m (£506m) in H1 2021, and €1.47bn 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,” it stated.

“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.”

The business said 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, the start-up of the OL3 power plant, and the tight raw material and logistics markets.

Separately, in a notice published yesterday (13 June), Stora Enso said it was raising its guidance for the full year 2022 operational EBIT, also due to sustained strong market conditions.

It stated: “Stora Enso estimates that the previous full year 2022 operational EBIT guidance will be exceeded.”

The company has changed its full year 2022 operational EBIT guidance to be higher than the full year 2021 of €1.53bn. The previous guidance for the full year 2022 was an operational EBIT to be approximately in line with the full year 2021.

The business added: “During 2022, all the main markets of Stora Enso have experienced continued strong performance, with increased visibility and predictability for the full year. Consequently, Stora Enso has revised its internal forecasts for this period to a higher level than previously estimated.

“The strong underlying demand and commercial momentum has continued across all six divisions and geographies. All divisions remain fully booked and there is still a tight supply and demand balance in many product categories. The second quarter started with high selling prices, which have continued to mitigate inflationary pressures.”