Stora Enso posted a second-quarter operating profit of €49m (£42m), down from €94m at the same time last year.

It recorded a pre-tax loss for the quarter of €370m, down from a profit of €30m in the second quarter of 2008.

M-real recorded a pre-tax loss of €97m for the second quarter of 2009, on sales of €585m. Its operating result for the quarter was a loss of €73m.

Both businesses said that due to the overall situation of the financial market, further production curtailments will be carried out.

Stora Enso forecast that demand will remain weak during the third quarter of 2009.

However, chief executive Jouko Karvinen said the company's lower cost level will help it to defend its earnings against price pressure in certain paper grades.

He said: "The market environment for the group's products is expected to stay challenging as no immediate improvement in the economic outlook can be seen.

"Though the pace of contraction is slowing, demand is forecast to remain weaker than a year ago for newsprint, magazine paper and fine paper in the third quarter of 2009."

M-real said pulp prices have been increasing for the past four months, although euro prices still remain "clearly" under the price level seen at the end of 2008. Demand for speciality papers also remains below the normal level.

Both Stora Enso and M-real have reduced capacity in the marketplace and made redundancies and closed mills in order to tackle falls in demand and price.