The groups net turnover for January to June 2003 fell slightly to 603m (SEK8bn), with profits after tax down 22% to 59m. Operating profits fell 8.4% to 94m.

Holmen Paper, the company's newsprint and magazine paper division, suffered a 1% fall in deliveries of newsprint to Western Europe, but exports to outside Western Europe rose significantly.

Deliveries of supercalendered paper also fell by 1%, while deliveries of coated paper rose by 3%.

Holmen Papers net turnover fell by 2.5% to 288m, while its operating profit halved to 29m.

Although the market for paperboard remained stable during the second quarter, it was slightly weaker for recycled fibre-based paperboard.

Net turnover for Iggesund was 189m, up 4.2% on the same period last year. Its operating profit rose by nearly 40% to 39m, with deliveries up by around 3% as a result of higher exports.