The Group’s underlying operating profit in the first quarter 2010 was moderately above that of the fourth quarter 2009. This reflects a continued improvement in the European trading environment, first witnessed in the fourth quarter 2009, as well as the ongoing positive impact of the decisive actions taken to restructure the cost base of the business during 2008 and 2009. Results were significantly above the comparable period in the prior year.
Volumes in most areas of the business continue to recover, with first quarter sales volumes reflecting an increase over the fourth quarter of the previous year. Similarly, the upward momentum in selling prices in most of our key grades seen in the fourth quarter 2009 has continued, with previously announced price increases successfully implemented and maintained. A rising cost base due to commodity input cost pressures has partially offset these revenue gains.
