Heidelberger Druckmaschinen AG (Heidelberg) is publishing its results for the first quarter of financial year 2010/11 (April 1 to June 30, 2010). The overall improvement in the underlying economic conditions has had a positive impact on business. Heidelberg customers showed greater readiness to invest in the period under review, thus continuing the previous quarters' upward trend in incoming orders.

At EUR 786 million, incoming orders in the first quarter of financial year 2010/11 were 43 percent up on the previous year's figure (EUR 550 million) and 16 percent higher than the previous quarter (EUR 678 million). Contributory factors included positive exchange rate movements equivalent to around EUR 45 million, the high level of orders placed at the IPEX trade show in May 2010, and encouraging business developments - especially in China and Brazil.

As a result of the healthy incoming order situation, the Heidelberg Group's order backlog improved significantly to EUR 810 million at the end of the first quarter. This is the highest level for six quarters.

In the first three months of the current financial year, Heidelberg recorded sales of EUR 563 million, around EUR 36 million of which are linked to exchange rate movements. After adjusting for these movements, sales were 3 percent up on the previous year's figure of EUR 514 million.

"The market recovery continued in the first quarter, thus helping to maintain the upward trend in incoming orders and sales," said Heidelberg CEO Bernhard Schreier. "Together with the cost-cutting measures initiated, this has substantially reduced our operating loss," he added.

The operating result excluding special items improved considerably from the previous year's figure of EUR -63 million to EUR -35 million. Key factors in this improvement were slightly higher sales, the savings achieved by the cost-cutting program, and the greater efficiency resulting from the reorganization. Following the agreement reached between the company and employee representatives, parts of the provisions formed in the previous year to improve efficiency could be released. As a result, the income from special items was EUR 15 million. This produced an operating result, including special items, of EUR -20 million. Higher financing costs led to a financial result of EUR -35 million (previous year: EUR -22 million). The profit before taxes for the first quarter improved to EUR -56 million (previous year: EUR -86 million), while net loss in the period under review was EUR -52 million (previous year: EUR -69 million).

Heidelberg recorded a positive free cash flow of EUR 62 million in the first quarter, a significant improvement on the figure of EUR -29 million for the same quarter the previous year. Key factors in this positive development are the further improvement in net working capital and tight asset management.

"The further improvement in our operating result and the increase in our free cash flow prove that we are on the right track to ensure a stable and profitable future for Heidelberg," said the company's CFO Dirk Kaliebe. "Due to the capital increase approved by the Annual General Meeting at the end of July, Heidelberg can expand its scope with regard to other refinancing measures, and can thus boost its flexibility. Shareholders, customers, and employees will all benefit equally from this," he added.

Headcount fell by a further 278 in the first quarter of financial year 2010/11. As at June 30, 2010, the Heidelberg Group thus had a workforce of 16,218 worldwide.

Business results in the divisions
Since April 1, 2010, the Heidelberg Group has been split into the Heidelberg Equipment, Heidelberg Services, and Heidelberg Financial Services divisions. This new corporate structure will enable more targeted marketing and efficient delivery of customer services. There is to be greater focus on services and consumables alongside the traditionally strong new equipment business.

In the period under review, the Heidelberg Equipment division benefited in particular from the company's success at the IPEX industry trade show. After adjustment for exchange rate movements, incoming orders for the quarter increased by 57 percent on the same quarter of the previous year to EUR 501 million (previous year: EUR 301 million). Sales were 7 percent up on the previous year (1 percent after adjustment for exchange rate movements) at EUR 297 million. The operating result excluding special items for the first quarter was still negative at EUR -48 million (previous year: EUR -53 million), but the savings resulting from the program of cost-cutting measures and the reorganization had a positive impact.

The Heidelberg Services division is less closely tied to economic cycles than the Heidelberg Equipment division and has therefore been less affected when orders have fallen off. Even so, this division recorded higher incoming orders and sales than in the same quarter the previous year. Incoming orders were 15 percent up (8 percent after adjustment for exchange rate movements) at EUR 280 million, while sales were 13 percent higher (5 percent after adjustment for exchange rate movements) at EUR 261 million. At EUR 10 million, the operating result excluding special items was much better than the previous year's figure of EUR -11 million. This was the result of a more favorable sales mix, the increase in sales, and a lower cost base.

The Heidelberg Financial Services division is still responsible for all the company's sales financing activities. In the quarter under review, the division once again recorded a positive operating result of EUR 3 million, an improvement on the figure for the same quarter the previous year (EUR 1 million).

Further increases in Asia and Latin America
In the first quarter, incoming orders increased in all regions. The regional markets referred to in external reporting have been adapted to the company's internal sales structure. The Baltic markets and Finland have been moved from Europe, Middle East and Africa to Eastern Europe, and Mexico has been transferred from Latin America to North America. The figures for the previous year have been adapted accordingly.

At EUR 316 million, incoming orders in the Europe, Middle East and Africa region were 39 percent up on the previous year's figure of EUR 227 million. They actually doubled in the U.K. thanks to the company's successful showing at IPEX. German customers also rediscovered their willingness to invest. At EUR 84 million, incoming orders in the Eastern Europe region were up 59 percent on the previous year's figure of EUR 53 million. In the Latin America region, they more than doubled to EUR 44 million (previous year: EUR 19 million). This is a result of the positive development on the Brazilian market, which received a further boost from the orders placed at ExpoPrint Latin America 2010 in Sao Paulo. After adjustment for exchange rate movements, incoming orders in the North America region were merely up 7 percent at EUR 80 million (previous year: EUR 66 million). Especially high was the increase in the Asia/Pacific region. Incoming orders here totaled EUR 262 million, the highest level for five years and 42 percent up on the previous year's figure of EUR 185 million. The continued positive development in China played a key role in this, but significant increases were also recorded on many smaller markets such as India.

"The Chinese economy is still booming, with double-digit growth rates in some areas. China and Brazil are very attractive growth markets for us and we intend to further increase our share of sales there in the coming years," said Bernhard Schreier.

Outlook
For the current financial year 2010/11, Heidelberg is projecting a modest growth in sales. The result of operating activities will benefit from the increasing profit contributions as well as from the already achieved cost-reduction measures. Assuming stable economic developments, the company is still striving for a break-even operating result for the current financial year. The company's forecast of economic developments reflected in its financial year planning takes into account the respective product mix prevalent in the single markets. Nevertheless, the enormous growth in financing costs will place a heavy burden on the financial result. During the current financial year, Heidelberg therefore anticipates a marked net loss again.

For additional details, visit the Internet Press Lounge at www.heidelberg.com.

Other dates:
The figures for the second quarter of financial year 2010/11 are due to be published on November 10, 2010.

For further information, please contact:
Heidelberger Druckmaschinen AG
Corporate Public Relations
Thomas Fichtl
Phone: +49 (0)6221 92 9500
Fax: +49 (0)6221 92 5069
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

NewPage Corporation, the largest coated paper manufacturer in North America, announced today it has been honored by the HP Indigo Preferred Media partner program with a two-year extension of its preferred partner status.

NewPage has now earned this status partner four years in a row.  As a preferred partner, NewPage has achieved a higher level of collaboration with HP Indigo, going beyond substrate certification and including a commitment to ongoing product development and go-to-market cooperation.

"NewPage is the leader in digital coated paper technology.  Our trusted brands are manufactured with proprietary coating formulas and optimized for top performance on HP Indigo digital presses.  All our digital papers for HP Indigo are certified by the Rochester Institute of Technology to meet the stringent requirements for runnability, ink transfer, adhesion, image quality and blanket life," says Dennis Essary, director of digital papers at NewPage.  "With an efficient, modern ordering and supply chain management system, NewPage works diligently to consistently offer best-in-class service and support."

"NewPage, with its extensive range of HP Indigo-certified coated media, has taken a progressive stance in the proliferation of digital printing," said Alon Bar-Shany, vice president and general manager, Indigo division, HP.  "We are pleased to extend our mutually beneficial relationship with one of North America's most important paper manufacturers."

For more information about NewPage digital products for HP Indigo, please visit www.NewPageCorp.com or contact Dennis Essary at 888-557-3392.

Ahlstrom, a global leader in nonwovens and specialty papers, takes a further step in implementing its growth strategy in Asia through the acquisition of Shandong Puri Filter & Paper Products Limited in China from Purico Group. The parties have today signed the share sale and purchase agreement. Value of the transaction is EUR 22.5 million.

Shandong Puri Filter & Paper Products Limited is a producer of transportation filtration media and operates a plant in Binzhou in the province of Shandong in northeastern China. The site currently employs 170 persons.

Jan Lång, Ahlstrom's President & CEO, comments the acquisition:

"This acquisition is an integral part of our expansion in Asia, as it enables us to serve our global customers based in China and at the same time to build a platform in the country for further growth. Together with our plant in Hyun Poong, South Korea, the acquisition enables us to grow our market share in the Asian transportation filtration market", Jan Lång states.

The new site will be part of Ahlstrom's Filtration Business Area, which accounts for approximately one fifth of the Group's net sales. Ahlstrom currently generates about 10 percent of its annual net sales from Asia.

The acquisition is expected to be completed by the end of September and is subject to necessary approvals from the authorities.

Further information:

Jan Lång
President & CEO
Tel. +358 10 888 4700, This email address is being protected from spambots. You need JavaScript enabled to view it.

Tommi Björnman
Executive Vice President, Filtration,
Tel. +39 349 441 1034, This email address is being protected from spambots. You need JavaScript enabled to view it.

Seppo Parvi
CFO
Tel. +358 10 888 4768, This email address is being protected from spambots. You need JavaScript enabled to view it.

Exports of lumber and logs from New Zealand on pace to reach a record in 2010, reports the Wood Resource Quarterly

Higher demand for forest products in China, South Korea and India is benefiting log and lumber exporters in New Zealand. The value of exported forest products have increased over 54% in 2010, reports the Wood Resource Quarterly. The strengthening export market has pushed domestic sawlog prices to their highest levels in eight years.

The full article can be found in the attached PDF file.....

UPM and leading design bible Wallpaper* magazine have collaborated on an innovative project for the magazine's August issue. Hailed as its most ambitious issue to date, the magazine has been produced with no less than eight UPM paper grades with 21,000 subscriber generated digital covers on UPM Digi Finesse.

The Wallpaper* Handmade issue features unique designs for furniture, fitting, foodstuffs, fashion and much more. From cover to cover, Wallpaper* Handmade is a complete celebration of craftsmanship. Through working closely UPM, the issue also includes an A5 sketchbook documenting how several of the designs evolved. There is even a paper house to cut out and assemble, courtesy of architect Ryuji Nakamura.

UPM's Head of Magazine Publisher Sales for the UK, Dino Vasiliou, said: "Being offered a creative opportunity with such a renowned magazine is extremely exciting for UPM. This has allowed us to see the whole process rather than just paper supply – a unique experience."

He added: "We're delighted with the finished magazine. The feedback we've received already from the market is really encouraging. Working on such a creative and sometimes challenging project has been extremely rewarding."

Wallpaper* Editorial Director Richard Cook summed up the experience: "The whole ethos of this issue is about handmade qualities, buying something that's lasting and has real provenance. It's really important that people feel something when they read Handmade – that what they have is a thing of beauty, of integrity, something worth having, so it's not just information. Part of that is what it's printed on; the paper is part of the DNA."

You can read more about UPM's collaboration with Wallpaper at http://thegriffin.upm-kymmene.com/2_2010/story/11/eng.html

UPM has been working with IPC Media for more than 30 years. IPC media is leading publisher with more than 85 brands reaching an audience of 27 million readers in total.

An extended insider’s guide to Handmade can be found at http://www.wallpaper.com/handmade Special features include time-lapse films detailing the construction of the largest exhibits and picture galleries featuring every single Handmade product – some of which can be bought online. There is also an interactive tour of the exhibition staged during the Salone del Mobile in Milan.

For further information please contact:

UPM, Corporate Communications
Will Stone, head of communications UK & Ireland, tel +44 7841 493447
This email address is being protected from spambots. You need JavaScript enabled to view it.

Wallpaper
Victoria Higham, senior press officer, IPC Media, tel: +44 (0)20 3148 5401
This email address is being protected from spambots. You need JavaScript enabled to view it.

UPM

UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 23,000 people and it has production facilities in 15 countries. In 2009, UPM's sales amounted to EUR 7.7 billion. UPM's shares are listed on the Helsinki stock exchange.
UPM – The Biofore Company – www.upm.com, www.upmbiofore.com, www.upmforestlife.com

About Wallpaper*
Truly international, consistently intelligent and hugely influential, Wallpaper* is the world’s most important design and style magazine. It has attracted the most sophisticated global audience by constantly pushing into new creative territories and ensuring its coverage of everything from architecture to motoring, fashion to travel, and interiors to jewellery remains unrivalled. Wallpaper* has readers in 93 countries and has enjoyed unparalleled success in reaching the design elite right across the globe. To Wallpaper*, the world is one seamless marketplace, where consumers flit from one destination to the next, easily cross physical borders and cultural divides, and flirt with a variety of different brands, both established and undiscovered. With 12 themed issues a year, and a limited-edition cover by a different artist or designer each month, Wallpaper* has evolved from style bible to internationally recognised brand. www.wallpaper.com

Energy companies in Europe show increased interest in sourcing biomass from the US South, reports the North American Wood Fiber Review

Woody biomass in the US South is attracting interest from European energy companies in their search for long-term, reliable and competitively priced supply sources, reports the North American Wood Fiber Review. The increased competition for wood fiber has pushed pine pulpwood prices upward in the Southeastern states this past year.

The full article can be found in the attached PDF file.....

A public auction will be held September 29, 2010, by LiquiTec Industries, in association with Can-Am Machinery, to sell the assets from Sappi's permanently closed coated paper mill in Muskegon, Michigan.

Equipment from the Muskegon pulp mill, paper mill, and converting facility will be for sale.

Primary assets up for bid include a 174 in. wire width paper machine wet end, 2004 Bielomatik folio ream wrapper, Jagenberg Synchro 86 in. folio sheeter, Jagenberg converting complex sheeter and ream carton packaging line, Voith pulper, and a MSK/Covertech automatic shrink wrap skid carton line.

For a list of the Muskegon mill assets up for bid, visit: www.liquitec.net

Xerium Technologies will be upgrading equipment at its Weavexx forming fabrics facility in Kentville, N.S. To support the company, the province, through Nova Scotia Business Inc., is providing a five-year payroll rebate up to a maximum of $500,000.

"As a global competitor, we must ensure that the products we produce are of the highest quality," said plant manager Michael Fitzpatrick. "Our company has pioneered a number of technologies that are now considered industry standards. The capital investment in our Kentville facility is part of a long-term strategy to maintain our competitive advantage."

Weavexx has increased its export market, including Asia, which makes up a significant portion of the Kentville plant's business.

Weavexx employs 140 people in Kentville and has been a fixture in the community for more than 40 years. The plant produces forming fabrics -- highly engineered synthetic textiles used in paper production. Weavexx also supplies forming, press, dryer, and engineered fabrics.

Nova Scotia Business Inc. is Nova Scotia's private-sector led business development agency.

The unwillingness of consumers to pay price premiums for certified timber and timber products poses challenges for sustainable forest management, the Royal Dutch Association of Timber Trade Association (NTTA) has warned.

In a recent statement, the NTTA reported that their members’ imports coming from forest certified as sustainably managed by either PEFC or FSC rose from 45% in 2006 to 62% of total imports in 2009. Growth in demand for certified material, however, fell short of the available supply. With supply exceeding demand, traders had to mix certified material with uncertified material and sell it as uncertified.

NTTA warned that this undesirable development poses a threat to sustainable forestry as demand for certified products is a key driver for forest certification and sustainable forest management.

NTTA is now jointly with the Dutch Association of Timber Manufacturers (NBvT) developing a joint strategic plan “Smart with timber”, accompanied by an action plan “Conscious with timber” to enhance the profile of certified wood.

The objective of this joint initiative is to stimulate demand for certified timber and to make the use of PEFC and FSC standard practice in the Netherlands. Both PEFC and FSC are accepted for Dutch public procurement, following extensive assessments by the Dutch Timber Procurement Assessment Committee (TPAC).

Nationally, growth in imports of certified timber (excluding paper) rose from 13% in 2005 to 34% in 2008.

“The volume of certified timber available in the Netherlands demonstrates that Dutch traders take their responsibility for th sustainable management of the world’s forests seriously”, said Kees Boon from PEFC Netherlands.

“We now need all forest stakeholders in business, government and civil society to work together to raise the awareness of the importance of this topic among consumers. The joint initiative by NTTA and NBvT is a good example for this, and PEFC Netherlands is committed to work with all parties to positively change consumer behavior nationally as an important means to provide incentives for sustainable forest management globally.”