Aug 04, 2011. /Lesprom Network/. M-real’s 2Q 2011 sales totalled Euro 660 million, compared to Euro 685 million in the 1Q 2011. Comparable sales were down 3.6%. The operating result was Euro -32 million, and operating result excluding non-recurring items was Euro 32 million, as the company said in a press release received by Lesprom Network. A net total of Euro -64 million was recognised as non-recurring items in the operating result. In the previous quarter, a non-recurring gain of Euro 3 million was recognised in other operations from the property sale in Jyväskylä, Finland. “The investment shutdown at Simpele, unfavorable exchange rate development and cost inflation weakened profitability as expected during the 2Q. Ongoing measures to reduce costs, increase prices and eliminate the losses of the paper businesses at Alizay and Speciality Papers business area will, when realised, improve M-real's profitability considerably in the future. Short-term profitability is negatively impacted by the softening of the demand, especially in paper products, caused by the uncertainty of the European general economy, and the planned measures at Alizay and Speciality Papers. Profitability of board production is expected to continue good,” said Mikko Helander, CEO of M-real. Operating result excluding non-recurring items was weaker compared to the previous quarter due to the investment shutdown at Simpele in May, cost inflation and lower average selling prices due to the weakening of the US dollar and British pound. The delivery volume of board decreased from the first quarter due to the investment shutdown at the Simpele mill. The delivery volume of paper fell short of the 1Q due to the weakened market situation. M-real’s sales for January–June 2011 totalled Euro 1,345 million. Comparable sales were up 5.2%. Operating result was Euro 14 million, and operating result excluding non-recurring items was Euro 75 million. A net total of Euro -61 million was recognised as non-recurring items in the operating result for January–June.