May 05, 2011. /Lesprom Network/. Mondi Group’s underlying operating profit in the 1Q 2011 of Euro 187 million was above that of each of the last two quarters of the prior year and well in excess of that achieved in the comparable period of the prior year. This reflects both the positive trading environment and a very strong operating performance, as the company said in a press release received by Lesprom Network. Price increases have been realised across all major products in the 1Q 2011. Coupled with sales volume increases across all businesses on a like for like basis, this has more than offset the ongoing cost pressures being experienced across most business segments. Furthermore, there were no major plant maintenance shuts during the 1Q. Cash flow from operations remains strong despite an increase in working capital, largely attributable to increased revenue and seasonal effects. Following the conclusion of the major capital projects in Swiecie and Syktyvkar, capital expenditure was markedly reduced when compared to the 1Q 2010. The financial position of the Group at 31 March 2011 remained robust with net assets largely unchanged from the position at 31 December 2010. Mondi is an international paper and packaging Group, with production operations across 31 countries. The Group's key operations are located in central Europe, Russia and South Africa. Mondi is fully integrated across the paper and packaging process, from the growing of wood and the manufacture of pulp and paper (including recycled paper), to the conversion of packaging papers into corrugated packaging, industrial bags and coatings. The Group is principally involved in the manufacture of packaging paper, converted packaging products and uncoated fine paper (UFP).