European paper supplier M-Real reported today that first half 2008 operating results, including non-recurring items, were $119.1 million, down about 7 percent over the same period in 2007. Operating results excluding non-recurring items were about -$28.6 million, down from $28.6 million last year.

Sales for the half reached about $3.4 billion, down from about $3.6 billion last year. First half EBITDA, including non-recurring items, was about $362.3 million, down from about $409.9 million last year.

"We have found new profit improvements mainly through simplifying business concepts, which made it possible to raise the target of the profit improvement program in May,” M-Real CEO Mikko Helander said in a statement. “We will still launch new profit improvement actions later in the year to cover as much of the heavy cost inflation as possible.”

Earlier this year, M-Real announced price increases [0] for its magazine papers in the American and European markets. The price for its U.K. coated magazine papers increased by $80 per ton and $3 per 100 pounds—or about $60 per ton—in the U.S. The company attributed the increases to improving profitability in its magazine segment, which has faced pressures from increasing cost and strong market demand.

“There is a definite need to increase the prices for all paper and paperboard products, and we will do everything we can to achieve the necessary increases,” Helander said.