Jul 22, 2011. /Lesprom Network/. Sequana Group’s consolidated sales increased 1.3% to Euro 2,010 million in first half 2011 compared to pro forma first half 2010 (up 0.7% at constant exchange rates). This growth comes from selling price increases implemented in 2010, which offset the marked decrease in volumes during the first half, as the company said in a press release received by Lesprom Network. EBITDA reached Euro 87 million, down 21% compared to pro forma first half 2010. This decrease is mainly related to the increase in raw materials and energy (impact of around Euro 50 million compared to first half 2010), particularly pulp and waste paper, which continued to have high price levels, much greater than in first half 2010, as well as cotton (used in banknote papers production/Security division), with a price that nearly tripled between September 2010 and March 2011. Recurring operating income reached Euro 71 million (including a Euro 17 million exceptional actuarial gain related to a plan amendment of a British pension fund) compared to Euro 74 million in pro forma first half 2010. This represents a recurring operating margin of 3.5% of sales (-0.2 points). Recurring net income amounted to Euro 36 million compared to Euro 24 million in pro forma first half 2010, particularly given the improvement in financial income. After extraordinary items (mainly the capital gain from the sale of Antalis Office Supplies activities), net income attributable to owners amounted to Euro 35 million compared to Euro 6 million in first half 2010. Consolidated net debt at 30 June 2011 totalled Euro 642 million compared to Euro 674 million at 31 December 2010 and Euro 670 million at 30 June 2010. This Euro 32 million decrease compared to 31 December 2010 takes into account the proceeds from disposals over the period for Euro 98 million, partially offset by the increased working capital requirement related to seasonality. Commenting on the group’s first half performance, Sequana’s CEO Pascal Lebard said: "In the first half of the year, our business activity suffered from particularly difficult market conditions with a more significant decline in volumes than expected and strong pressure on raw material costs. However, we were able to contain the decline in our earnings thanks to the positive effect of our selling price increases implemented in 2010, the control of our fixed costs, and the contribution of growing and value added market segments. We also continued our strategy to gradually refocus on distribution, in which we are the leader in Europe with Antalis, by participating in the consolidation of the paper sector with the effective sale of the Arjowiggins Decor and Abrasives activities to Swedish group Munksjo."