Paper maker Mondi reported a 44 percent decline in headline earnings per share due to lower sales and prices last year, and said it could make further supply cuts to match flagging demand. Group revenue for the year was €5.26 billion, down from €6.34 billion in the prior year.

David Hathorn, Mondi Group chief executive, said: “Mondi has delivered a solid full year performance in very challenging market conditions. The early part of the year was particularly difficult for our European operations, characterised by sharp volume declines and consequent pricing pressures. It was, however, pleasing to see the subsequent recovery in demand, which supported price increases during the fourth quarter in various of our packaging segments.”

“The strong performance throughout the year of our European uncoated fine paper business was particularly noteworthy and is testament to the inherent strengths of this business and management’s unwavering focus under very challenging circumstances.”

Mondi said its future performance would largely depend on the pace and extent of the global economic recovery. "While there has been substantial industry capacity rationalisation over the past year, further supply side reductions may be required to ensure that supply and demand are balanced," the company said in a statement.