The paper giant has recorded sales for July to September totalling €826m (£650m), down 0.4% from €870m the same time a year earlier. Operational result for the period was a loss of €8m, down from €44m profit the same time a year earlier.

M-real's total sales for January to September were €2.51bn, down 3.9% from the same time a year earlier.

It has said measures to raise product prices will continue in all business areas, and the implementation of price increases for coated magazine paper and folding boxboard is progressing.

M-real said the general weakening of the economy may pose challenges in the future, as the financial market crisis has "to some extent" brought down consumer demand and investment activity.

If the insecurity of the global economy continues for a long time, it may also have a negative impact of the operational conditions for the European paper and paperboard industry.

Compared with the previous year, M-real's operating result excluding non-recurring items was weakened by the increased wood, raw material and energy costs.

M-real also said the stronger euro against the US dollar and pound had made an impact.

In September, M-real sold its coated graphic paper business to Sappi for €750m.

Mikko Helander, M-real chief executive, said after the closing of the divestment to Sappi, M-real's profitability, financial position and future prospects are "significantly improved".

He said: "M-real will be a more focused paperboard and paper company with a strong core in high-quality cartonboards.

"Our recent price increases in paperboard have been successful."