UPM warns of indirect tariff hit amid growing uncertainty as earnings fall
April 24 (Reuters) - Finnish forestry group UPM-Kymmene UPM.HE reported falling operating profit for the first quarter on Thursday and said that market uncertainty had increased towards the end of March amid global trade tensions.
"The uncertainty related to tariffs may impact trade flows, cause hesitation among customers, disrupt supply chains and weaken consumer confidence in the coming months," CEO Massimo Reynaudo said in a statement.
Currency fluctuations amid the trade war triggered by U.S. President Donald Trump's tariff decisions may also affect the company's results, Reynaudo added.
However, he said the direct tariff impact on UPM's businesses should be relatively limited.
UPM has five sites in the United States for producing paper and labeling materials and handling deliveries of exported products. Its revenue in the country grew 32% in 2024, accounting for nearly a fifth of its total turnover.
Comparable earnings before interest and taxes (EBIT) fell 14% to 287 million euros ($325.8 million) in the first quarter. It still expects the metric to be in a range of 400 million to 625 million euros in the first half of the year.
UPM's shares were up 2% as of 0720 GMT.
($1 = 0.8809 euros)
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