The company also says the 2008 year is challenging due to increases in pulp production curtailments as a result of wood availability problems, decrease in fine paper delivery volume, strengthening of the euro and delay in coated fine paper price increase.

Mikko Helander, CEO of M-real says, “The announced internal profit improvement actions have proceeded even better than planed but as earlier announced they will not be enough to cover the cost inflation this year.”

Helander continues, “Most of the M-real’s product prices have been increased but the further weakened US dollar and the British pound have considerably offset the positive effect. Efforts to increase all product prices continue.”

The company concludes its full year 2008 operating profit excluding non-recurring items will be less than last year. M-real has not yet given a profitability outlook for the whole of 2008.

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