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Huhtamaki, the Finnish packaging group, has recorded "improved earnings" in the second quarter of the year, but is still suffering from currency exchange rates and high raw material and energy costs.

Huhtamaki recorded a 5% increase in sales compared to the first three months of the year of €590.5m (£469.2m). This figure was, however, 3% lower than the second quarter of 2008.

Earnings before interest and taxes increased by 26% to €27m, but fell by 24% on the same period last year.

The rigid and flexible plastic packaging group said that demand for its products was stable in the Americas, soft in Oceania and slowing down in Europe. Net sales, it said, had declined due to the adverse impact of currency exchanges.

In April, the firm announced it would close its UK rigid packaging operation with the loss of some 160 jobs, or two-fifths of its UK workforce.

A consultation process at two plants, in Gosport and in Portadown, is due to be completed by the end of the month.