Printing industry confused about record profits of individual companies in the paper industry in economically very challenging times

For example, UPM published a strong quarter for its UPM Communication Paper business: "Demand for graphic papers was good and price increases more than offset the increase in input costs, especially extreme energy costs." UPM itself points to "successful margin management" that helped generate high earnings across all business units in a period of high volatility and inflationary input costs, as well as challenging supply and logistics chains. UPM expects "record results" for the rest of the year. "Such a statement is met with considerable irritation by many companies in the printing industry in view of the continuing threatening situation in our sector. Record results and increased profit margins on the one hand and existential hardship on the other are a difficult fit in the same value chain," said Dr Paul Albert Deimel, chief executive of the Bundesverband Druck und Medien (German Printing and Media Industries Federation), commenting on the latest announcements.

"Of course, every supplier is free to set its prices in such a way that they not only cover costs, but also generate profits. Last but not least, profits are the economic basis for investments in order to maintain one's own future viability. And the printing industry also has a vital interest in maintaining its supply chains, of which the paper industry is at the forefront," Deimel explained.

In view of the rapid increase in the price of graphic paper, the galloping cost of energy and the rising uncertainties surrounding gas supplies, companies in the printing industry are currently facing serious economic and in some cases existential problems. In view of the substantial increases in the price of paper, the number of customers who are discontinuing their previous print products and switching to digital channels is also growing. For printers this means painful revenue losses. "If, in such a tense situation, suppliers significantly increase their prices beyond the cost increases that have arisen, this ultimately endangers the existence of the entire value chain. We therefore appeal to all paper manufacturing companies to continue to handle the pricing instrument fairly and responsibly in the future," says Deimel.