M-real had a mixed third quarter, with turnover improving but operating profit decreasing on the same period last year.

Turnover for the group rose by 28% to 3.2bn (E5.2bn), but operating profit fell by 28% to 196m.

The rise in turnover was down to the inclusion of both MoDo Paper and Zanders in the groups consolidated figures.

But weak demand for paper products during the January to September period hit profits.

Delivery volumes dropped by 350,000 tonnes (17%), with investment shutdowns at both Kangas and Husum mills leading to a 22m cut in profits.

The paper groups operating profit fell 42% to 117m due to weakening demand in all product groups.

Turnover rose 41% to 1.6bn due to the inclusion of both Zanders and MoDo.

The group said it expected weak product demand through the remaining quarter of the year, with production shutdowns set to continue.

The incorporation of Zanders and MoDo follows the groups name change from Mets-Serla in April this year (PrintWeek, 4 May).

Story by Andy Scott