HELSINKI (AP) -- UPM-Kymmene Corp., the world's largest magazine paper maker, on Tuesday reported a fourth-quarter net profit of euro295 million ($410 million) and said it expects a slight improvement in the industry.

The profit was up from a net loss of euro286 million a year earlier. Revenue fell 9 percent in the October-December period, to euro2.1 billion from euro2.3 billion, but lower costs helped improve performance, UPM said. The company's share price jumped more than 2 percent to euro8.34 ($11.60) in Helsinki.
“The current year will pose challenges, but we see signs of improvement too. However, in our main markets recovery is expected to be slow and differ from country to country,” Pesonen said. “In 2010 we expect the pulp business to improve … and also paper deliveries are expected to be higher than last year.”
The recession has severely hit the forest products industry, and UPM has axed thousands of jobs and warned of further layoffs as it cuts production and closed mills.
UPM said profitability in the period was mainly improved by lower costs, including euro80 million in wood costs and euro25 million in energy costs, compared to 2008. Cutbacks also dropped fixed costs by euro60 million, it said.