PAPER and packaging firm Jefferson Smurfit is blaming poor prices for a 60 per cent slump in pre-tax profits.

But the firm, which has sites at Burnley, Nelson and Blackburn, said the problem appeared to be "bottoming out" and a more normal situation looks set to return. The company reported profits in the first six months of the year fell to £56.48 million from £116.67 million at the same stage last year.

Chairman Dr Michael Smurfit viewed the industry's immediate prospects with "cautious optimism".

While volumes have been up and costs stable, oversupply and excess capacity had led to weak pricing, he said.

Earlier this year the firm opened a new UK design centre at its Nelson plant.

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