"The Paper business was able to compensate for the challenging market conditions through lower costs. Our EBITDA reached the same level as last year and our operating profit excluding special items increased to EUR 194 million (126 million). Operating cash flow was EUR 286 million (319 million) and we resumed the downward trend in our net debt.

The Pulp business experienced a solid quarter with good delivery volumes, taking into account the maintenance shut down on the Fray Bentos mill in Uruguay. Stable profitability in the Asian paper business continued. In Label, our growth activities are paying off with volumes more than offsetting the increased fixed costs. In Energy, profitability continued to be good, despite low hydropower volumes and the summer.

In Q3, we made a significant effort in our European Paper operations and cost reductions successfully compensated for the four percent decrease in both prices and deliveries compared with last year. The recovery from low profitability in the first half of the year was driven by the decrease in fixed and variable costs, together with determined cost reduction measures and seasonally higher delivery volumes. In Q3 we also had a positive impact from unrealised energy hedges.

When planning our future, we have to look beyond the next few quarters. Therefore our profitability programme includes both short-term actions and initiatives for the next three years. What we have seen in Q3 are just the first steps. Our new business structure will sharpen operational focus as we continue working towards an improved business portfolio,” Pesonen concluded.