Paper maker UPM misses expectations in Q3 on weak Europe margins

HELSINKI Thu Oct 25, 2012 2:46am EDT

HELSINKI Oct 25 (Reuters) - Finnish forestry group UPM-Kymmene reported a smaller-than-expected quarterly profit, due to weak margins in its European paper business.

Its underlying operating profit in the third quarter fell 10 percent from a year ago to 122 million euros ($158 million), missing all analysts' forecasts which averaged 137 million euros in a Reuters poll.

UPM, the world's biggest producer of graphic papers, also repeated it expected its full-year core operating profit to fall from 2011. ($1 = 0.7711 euros)

(Reporting By Jussi Rosendahl; Editing by Ritsuko Ando)