The firm issued a profits warning in September, citing an anticipated 18m hike in energy costs as the main reason.
Chief executive Tony Thorne said the situation remained broadly unchanged from the profits warning.
"Trading conditions continue to be challenging and it is proving to be difficult to mitigate the extraordinary rise in energy costs."
Thorne said selling prices of paper and corrugated packaging continue to be affected by lower box demand and over-capacity in Europe for corrugated case materials.
The sharp rise in energy costs has also hit margins, and the company said it continues to take action to reduce costs, improve the sales mix and manage prices.
Interim results for the six months to 31 October will be published on 7 December.
Tough trading for DS Smith
Packaging manufacturer DS Smith has reaffirmed its bleak outlook for the remainder of 2005, as the group prepares to issue its half-year results at the end of the year.
