Overall sales fell to €623m for the first quarter of 2009 compared with €859m at the same time a year earlier.

The operating result excluding non-recurring items was a loss of €65m compared with a profit of €14m in the first quarter of 2008.

Chief executive Mikko Helander said demand for the company's main products in the first quarter was weak due to the global recession and the continuing decline of the price of pulp.

"We continued our major profit improvement programmes which will, concurrently with declining wood raw material and chemical costs, ease the challenging situation," he said.

"In the current difficult operational environment, improving cash flow and securing liquidity is most important."

In February 2009, M-real launched an €80m profit improvement programme and a separate programme of €60m to improve cash flow.

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