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Rising costs squeeze Metsä Tissue's profit

May 4 2011  Metsä Tissue posted net sales of 241 million Euros for January-March, yet operating profit dropped to seven million Euros from 19 million the corresponding period last year.

Net sales showed a year-on-year increase of roughly seven percent on the corresponding period last year. Growth in net sales was largely attributable to a favourable price level and sales mix as well as advantageous exchange rates. Sales of Metsä Tissue’s own brands showed a year-on-year increase of 13 percent.Operating profit was dampened by the rising cost of pulp, recovered fiber, other raw materials and energy. Rising transport costs likewise ate away profits.

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