For the year, it recorded €513m in operating profit excluding special items, compared with €835m in 2007.

The loss in the fourth quarter was related to writedowns in the company's wood division.

The company warned last year that it expected delivery volumes to decrease in all of its businesses, and as a result it has cut production across many of its sites.

Earlier this month, UPM also announced that two of its leading members of its sales team had left the company as part of a newly launch UK sales organisation.

Graham Fraser, UPM's director for magazine papers, and Mike Holland, sales director UPM UK, left the business on 14 January.

The company said the changes of the new sales organisation, which come into effect immediately, reflect the global restructuring of its paper business group announced on 10 September 2008.