Pre-tax profits hit 54m (SEK702m), while net sales rose almost 14% to 513m.

Production at the group's five pulp mills operated by Sdra Cell rose by 50,000 tonnes to 991,000 tonnes of market pulp.

Sdra president and chief executive Anders Wahroln said the results were particularly good considering the continuing weak economic conditions.

The group expects the pulp market to be weak and uncertain during the second half of the year. Only an upturn in the world economy would improve the market, he said.

Sdra Cells sales totalled 260.5m, down 11.6% on 2002. At one point the price of the groups main product, bleached softwood pulp, increased to $560 per tonne, but by the end of June it had fallen to $520.