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

Holmen Paper, the companys newsprint and magazine paper division, suffered a 1% fall in deliveries of newsprint to Western Europe, although exports to markets outside Western Europe rose significantly.

Deliveries of supercalendered paper fell by 1%, but deliveries of coated paper rose 3%. Holmen also cited a 10% fall in average prices.

Total deliveries rose 9% as a consequence of the higher exports, coupled with the effect on last years deliveries of the replacement of a paper machine at Hallsta mill in Sweden.

Holmen Papers net turnover fell 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 Holmens paperboard division Iggesund rose 4.2% to 189m, while operating profit was up by nearly 40% to 39m and deliveries increased by 3% as a result of higher exports.

Story by Andy Scott