M-real, Stora Enso and UPM all reported improved profits, Holmen's sales and profits fell and SCA increased sales but its profits fell.

Higher paper prices and strong demand in magazine and newsprint helped improve profits. 

"In Europe demand for advertisingdriven paper grades is expected to be good ," said Stora Enso chief executive Jukka Hrml. "Publication prices were increased at the beginning of the year and are expected to remain at that level."

In fine paper the situation was mixed. Demand for coated products was said to be good, but certain uncoated grades were under pressure due to overcapacity. M-real pointed out that price increases in coated fine paper had been slower than the firm had hoped, but it would continue to try and push through increases.

The proposed strike at Finnish mills may affect deliveries and profitability the second quarter. M-real estimated that earnings in the second quarter will be lower than the first quarter due to "seasonal factors and the weaker than forecast price trend for fine paper grades". This suggests that the mills foresee they will have trouble implementing the price rises they wish to.

According to UPM fine paper deliveries decreased 9% and there was "no marked change in average prices", in fact in the quarter it said prices were down 2%.

2005 First quarter results

Firm            Sales         (04)         Pre-tax profit      (04)

Holmen       280m      288m       22.7m            392m
M-real         909m      955m       52m              -28.4m
UPM            1.54bn    1.66bn     100m             41m
Stora Enso  2.13bn     2.04bn     53.7m            56.5m
SCA           1.66bn     1.60bn     894m             139m