HELSINKI, Jan 31 (Reuters) - 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 unit.
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)