First-half results in June showed group turnover at 570m (SKr7.7bn), down nearly 3% on the first half of last year. Operating profits were 72.5m, a reduction of 20% on 2003 levels.  

Holmen president and chief executive Magnus Hall said that while demand for newsprint and magazine papers continued to rise, price levels remained low. 

The drop in profits was also due to currency fluctuations. Net turnover for its Holmen Paper business fell by 2.3% to 273m for the six-month period.  

Operating profits for the paper division nearly halved to just 16.4m, while deli-veries rose in line with demand in Europe.