Nov 19, 2009. /Lesprom Network/. Smurfit Kappa Group (SKG) has reported a 26% fall in profits to Euro 555 million for the first nine months of the year. Revenues at the group fell 17% to Euro 4.5 billion during the year to the end of September, as Business and Leadership reported. The weak containerboard pricing environment during the first half of the year generated downward pressure on European corrugated prices in the 3Q, which negatively impacted the group’s earnings in the period, SKG said. However, compared to the 2Q 2009, EBITDA in the third quarter was Euro 8 million higher, which the group said reflected stable demand and higher margins, and its ongoing cost-reduction efforts. Meanwhile, SKG has reduced its net debt by 5% or just over Euro 150 million, in the year to date in 2009. Demand for its products was generally stable through the third quarter, the group said. However, SKG added that while sentiment has improved across its markets, “a consumer-led economic recovery and return to demand growth for corrugated packaging has yet to materialise”. The group also today announced the launch of a Euro 500 million bond issue, with the proceeds being used to pay down senior debt. Smurfit Kappa Group is a world leader in paper-based packaging with operations in Europe and Latin America.