Nov 22, 2005. /Lesprom Network/. Mitsubishi Paper Mills Ltd reported a net profit of JPY 6 billion ($50.2 million) in the half year to September 30, 2006, which is 16.7 times the net profit in the same period last year. It was on revenue down 3.4% to JPY 113.5 billion ($950.2 million). Operating profit was up 23.1% to JPY 3.016 billion ($25.3 million) and ordinary profit was up 53.2% to JPY 2.052 billion ($17.2 million). The interim dividend will be cancelled. Despite a favourable performance by the photographic papers in the photosensitised materials segment, the decrease in revenue followed an unfavourable performance in other segments. The decrease in sales volume and sales price due to prioritising product price maintenance in the paper and pulp segment also contributed to the drop in revenue. The substantial increase in profit was due to cost cutting initiatives, including distribution costs. The company's effort to improve profitability through structural reform, disposal of unprofitable products and cutting labour costs was also a factor for the significant increase. The company expects a net profit of JPY 7.5 billion ($62.8 million) in the year ending March 31, 2006, on a revenue of JPY 230 billion ($1.9 billion) and an ordinary profit of JPY 3.5 billion ($29.3 million). Mitsubishi Paper Mills gets a little sensitive about the paper business. The company, which was founded in 1898, makes photosensitive materials, fine and specialty papers, and pulp. Mitsubishi Paper Mills' many products include inkjet paper, color photographic paper, tracing paper, magnetic recording paper, and bleached kraft pulp. The company operates paper mills in Japan and Germany. While Mitsubishi Paper Mills' largest market is Asia, it exports products worldwide.