Swedish paper group Klippan Paper has reported a positive third-quarter profit after financial items for the first time since 1995, despite a weak market and falling output.

The group said that the weak Swedish currency and a favourable product offering had contributed to the result.

For the first nine months of 2001, turnover fell by 1% to 42m (SEK 645m), a result of Klippans strategy to reduce volumes and sales to markets that offered low profit margins.

Paper production from January to September fell 10% to 67,800 tonnes, with pulp output down by 7% to 20,600 tonnes.

Nine-month operating profit dropped slightly to 1.6m, but profit after financial items was up 5% to 980,000.

Order figures improved towards the end of the third quarter, but were still considerably below 1999 levels.