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March 30 (Reuters) - Finnish paper producer UPM has scrapped its outlook for 2020 because of the significant uncertainty caused by the coronavirus pandemic although its business was not hit in the first quarter, it said on Monday.
UPM said its financial position was strong, with net cash on its balance sheet and liquidity reserves further strengthened by a 750 million euro ($827 million) credit line signed in March.
“Until now, the UPM businesses have not been adversely impacted by the pandemic and the customer demand has been on expected level ,” it said in a statement.
“Although many UPM products serve essential everyday needs, it is likely that the customer demand for some UPM products would deteriorate due to the slowing world economy,” it said.
“To prepare for different scenarios, UPM is planning to use shift arrangements, temporary layoffs, or reduced working hours to adjust its operations,” it said.
UPM shares were up 0.7% at 23.19 euros in afternoon trade. ($1 = 0.9073 euros) (Reporting by Tarmo Virki in Tallinn; Editing by Susan Fenton and David Clarke)
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