Papering over the cracks

All is not well at the paper mill. Profits are falling fast at pulp-and-paper (P&P) companies worldwide. In Europe, the biggest firms have posted an 85% drop in first-half 2005 profits, while in Canada profits are down by as much as 118% (see box overleaf, Trouble at the mill). And these figures are likely to get even worse if the few producers that had posted Q3 results as Energy Risk went to press are anything to go by. The main reason? Soaring energy prices.

P&P companies buy electricity to ru

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