"The recovery of the print media industry has continued during the first six months our financial year," said chief executive Bernhard Schreier. "Sales and incoming orders were up on the previous year's figures in virtually every region and we believe that the same will be true for the second half."

The firm also reported the first profit in its post press division with a modest 1.35m (2m) figure in the second quarter. For the first half the division's sales rose 16% to 117.6m and losses halved to 1.35m.

Although bullish for the full year the firm tempered its optimism, chief financial officer Herbert Meyer said that currency fluctuations and raw material and energy prices still presented a risk.

Sales for the first half of 2005-2006 rose 12% to 1.03bn and operating profit rose 1,083% to 48m. The rise in operating profit included the effects of lower personnel expenses at its German sites for the first time.

It also plans to buy back 5% of the firm's shares before 19 January 2006.

Shares in the firm rose 6% to 19.98 following the release of its results.