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Smurfit Kappa, the paper-based packaging manufacturer, has reported a 16% fall in core earnings to EUR231m (£189.8m) in the third-quarter of the year but remains on course to meet expectations for the full-year.

The company said its revenue fell by 4% to €1.8bn in the period because of the negative impact of currency, disposals and closures.

Smurfit Kappa reported that its corrugated shipments in July and September were flat year-on-year, and had benefited from the companies pan-European offering and its customer base being in the food and beverage sector.

It said that lower demand for recycled containerboard has led to a continued overhang of inventory despite industry market downtime. It said prices remained reasonably stable in August and September.

However, the company said the price increase it introduced in October has not been successful and it continues to take market related downtime to avoid an increase in its inventory levels.

It is planning a further 80,000 tonnes of downtime in the fourth quarter, it said.

The group reduced its annual recycled containerboard production by more than 200,000 tonnes in 2008, 6.5% of its capacity, through the permanent closure of its Valladoid mill in Spain and market downtime.

Gary McGann, chief executive, said: "The group expects conditions to remain challenging for the remainder of the year, characterised by the slowdown in corrugated demand and pressure on pricing. Against that backdrop, the group is pleased to confirm that it remains on target to deliver the expected level of financial performance in 2008."

Smurfit Kappa operates in 22 countries in Europe and nine countries in Latin America.