Finnish shipping company Finnlines has issued a profit warning ahead of the publication of its first-quarter results.

Finnlines said a sharp drop in cargo volumes that started in the fourth-quarter of last year had continued this year.

As a result, Finnlines'' earnings before tax will have declined year-on-year from EUR14m (US$18m) to EUR30m.

The company said: "Finnlines has started a number of actions to respond to the difficult market conditions."

"The actions include adjustment of the capacity to the demand where possible, cost-saving initiatives, personnel adjustments, and even divesting non-core business."