Stora Enso and Holmen Paper have reported favourable first-quarter results, despite facing what Stora chief executive Jukka Hrml described as "ever tightening markets".


"All our financial targets have been more than well met, and we are more than happy with our first-quarter performance," he added.


Stora Ensos sales increased by 21.6% to 2.2bn (E3.6bn), but net profits fell 3% to 177.4m.


Hrml was cautious about the outlook for the rest of the year.


"Although Europe is stable, especially for coated magazine papers and newsprint, coated fine paper prices are under pressure," he said.


"In North America the outlook is weaker due to the widespread economy problems, and it remains to be seen whether this will spread to Europe or not."


Holmen Paper posted a net turnover of 282m (SEK 4.1bn), a 12% rise on last year, but profits after tax fell by 24% to 33.6m due to lower delivery volumes and high maintenance costs.


Although the slowdown in the US economy increased uncertainty and lowered consumption, European demand and prices have remained stable.


Stora Enso will also continue to take downtime when it believes it is appropriate.


And Hrml said that despite constant industry rumours, Stora Enso would not be making a move for any of Asia Pulp & Papers subsidiaries.


He said Stora Enso would continue to concentrate on three main areas Europe, North America and South-east Asia.


Story by Andy Scott