Stora Enso's results were heavily affected by the dispute, with around 34.5m (EUR50m) wiped off the producer's operating profit, which was 12.2m.

Despite an upturn in sales of 2.7% to 2.2bn compared to the same period in 2004, pre-tax profits for the group were 69,000, compared to a profit of 32m last year.

On the bright side the firm forecasted that demand for both publication and fine papers is set to remain firm, mainly due to the dispute decreasing stock levels, with prices remaining stable.

The action resulted in 850,000 tonnes of production being lost during the seven-week period.

Looking forward, chief executive Jukka Hrml said that the impact of the Finnish dispute in the third quarter would reduce its operating profit by a further 28m, and take out some 100,000 tonnes of paper and board production.

UPM's sales slumped 10% year on year to 1.5bn, with magazine papers the hardest hit with sales halved to 480m.

The Finnish dispute reversed the second quarter pre-tax profit of 55m in 2004 into a loss of 35m in 2005.

Paper production during the mill lockouts was down 27% to 1.9m tonnes on the same quarter last year, with paper deliveries down 13% to 2.3m tonnes.

Chief executive Jussi Pesonen said demand for paper during the second half of the year is predicted to be good, with average paper prices forecasted to be higher.

Pesonen said that orders have been strong since the end of the dispute and therefore the market is expected to be tight in terms of supply for magazine paper, newsprint and speciality papers.

Story by Andy Scott