Nov 24, 2004. /Lesprom Network/. The Inapa Group recorded consolidated profits, after minority interests, of Euro 252.1 million at the end of the 3rd quarter of 2004 (accumulated), representing an increase of Euro 4.4 million (pre-tax) and Euro 3.1 million (post-tax) compared with the loss of Euro 2.8 million recorded for the same period of 2003. Operating in 9 European countries and one of the leading paper distributors, the Inapa Group reinforced its position in the markets in which it operates, with its market share growing to 15.7% at the end of September 2004 from 14.6% in the same period of the previous year. The growth recorded in the previous quarters in the European paper distribution sector generated forecasts which were not achieved in the 3rd quarter of 2004, when the volume of sales grew by only 0.5% (Eugropa - European Paper Merchants Association). In spite of announcements of increases made by the principal paper producers, prices continued to fall throughout the third quarter. The negative impact of the inevitable and traditional seasonality was worsened by the trends of the sector, obliging the main players to systematically lower their respective forecast results. In spite of the above, companies from the Inapa Group nevertheless outperformed the market in the 3rd quarter of 2004, with the volume of rising by approximately 6%, whereas the sales volume registered by the market was a mere 0.5%. In terms of the accumulated figures for the end of September, the sales volume of the Group was up 8.3%. In spite of the growth in sales volume, the value of sales increased slightly, by 0.3% (783.6 million Euro in 2004, compared to 781.5 million Euro in 2003) as a result of a fall in the average sales price (approximately -7.5%). Chiefly influenced by the effect of sales volume, the gross volume grew by 6.6 million Euro, representing an increase of 5.2%. Operational Results (EBIT) were 17.7 million Euro, compared to the 14.7 million Euro registered in 2003, thus showing significant growth which was due to the variation in the gross margin, partially diminished by the growth in variable operational costs, particularly logistical costs, of 3.0 million Euro. The improved consolidated management of circulating capital, the favourable conditions of the securitisation operation concluded at the end of 2003 and the stability of the EURIBOR throughout 2004 contributed to a reduction in financial costs of approximately 1.4 million Euro. The consolidated results for this quarter include, for the first time, the recently acquired Baumgartner Papier S.A., which merged with Inapa Suisse S.A. This broadening of the scope of consolidation was reflected in an increase in sales during the quarter in question, with a volume of 9 million tonnes and valued at Euro 10.7. Apart from this exception, the scope of activities of the Group remained practically unchanged in the 3 quarters of 2004 and 2003. The management sectors affected were not comparable, apart from non-current results. In spite of the structural imbalance in the sector (excessive installed productive capacity), and notwithstanding the negative impact of seasonality in the 3rd quarter, the Inapa Group manifests the conditions necessary for consolidating the increased profitability achieved in 2004 and improving annual net results when compared with results for 2003.