HELSINKI Jan 31 Finnish forest group
UPM-Kymmene said it expected weak paper demand in
Europe to weigh down profits from its paper business in the
first half of this year.
UPM said on Thursday it expects paper prices and deliveries
in Europe to fall during the January-June period compared to the
second half of 2012, although it gave a stable outlook for its
energy, pulp and label businesses.
UPM had earlier this month announced its quarterly core
operating profit fell 6 percent from a year earlier to 138
million euros ($187 million), dented by losses at its paper
Paper makers are expected to cut output as Europe's
recession exacerbates declining demand, with consumers shifting
to online media from newspapers and magazines.
($1 = 0.7370 euros)
(Reporting By Jussi Rosendahl)