Jun 02, 2005. /Lesprom Network/. Austrian listed cardboard maker Mayr-Melnhof attributed the fall in its net profit for the first quarter of 2005 to the intensive price competition and sluggish economic development, the company said. Mayr-Melnhof net profit fell 4.9% year-on-year to Euro 25.3 mln ($31.4 mln) for the first quarter of 2005. Due to the start-up of a modernized cardboard machine in the Dutch Eerbeek mill and an investment-related shutdown in the Bulgarian Nikopol mill, Mayr-Melnhof's sales of cardboard were lower in the first three months of 2005 than the record-high level of the previous year. Mayr-Melnhof's Packaging Division registered a growth in sales due to the company's acquisitions in 2004 and its new business activities. In view of expected lower capacity utilization Mayr-Melnhof forecast its 2005 half-year results to be below the record-high levels of 2004. The company plans to continue its expansion in western and eastern Europe. Due to the uncertain economic developments Mayr-Melnhof does not expect a growth in private consumption in the main western European market or a rise in demand for cardboard and folding cartons. Eastern European markets, however, remain dynamic but with strong competition. Under these circumstances priced stability has become more difficult, the company added.