M-reals second-quarter operating profits halved to 58m (E82.2m) against the same period last year. President and chief executive Jouko Jaakkola said profitability had been hit by low prices and slack demand, plus annual maintenance at its Finnish mills, which cost 7m during the period.

Although Jaakkola said the results were unsatisfactory, he felt that the bottom of the market downturn had been reached.

M-reals sales fell 6% to 3.1bn, while pre-tax profits slumped by almost two-thirds to 20.4m.

However, the firms Map Merchant Group improved its performance, turning last years 500,000 operating loss into a 2.4m profit, although its sales fell 10% to 243m due to low delivery volumes.

Meanwhile, International Papers net sales fell 1.5% to 4bn in the second quarter.

Low volumes and economic conditions hit the US groups net earnings, which dropped by almost 60% to 54m.

The group also took a 50m pre-tax charge due to restructuring that included plant closures.