Klippans sales rose 3% to 16m (SKr240m), while operating profits were up 92% to 1.3m. The groups after-tax profit doubled to 870,000, helped by variable paper prices and a fall in pulp prices.

Holmens net turnover fell 4% to 264m, although operating profits were 5% up at 50m. Profits after tax rose by under 1% to 33m, and Holmen said the market for newsprint and magazine papers remained weak.

Sdras sales were stable at 188m, but the reduced demand for pulp led to a fall in prices, which hit operating income (down 82% to 5m) and pre-tax profit (down 76% to 5.6m).

Norkse Skog, the Norway-based newsprint and magazine paper producer, said it would continue to tighten its belt after earnings before taxation fell 76% to 27m. Operating profits were down 42% to 43m.

But the group said it was well equipped to meet upswings when they come and that it was giving priority to paying off debt.

Story by Andy Scott