Norske Skog's Net Loss Narrows 63 Pct In Q3

IAN MacDOUGALL

OSLO (AP) — Norwegian newsprint maker Norske Skog said Thursday its losses narrowed by 63 percent in the third quarter, helped by cost reductions and currency gains.

The better-than-expected result — as well news that its cost-cutting measures are going according to plan — saw the company's shares soar, closing up 13.7 percent to 10.4 kroner ($1.83) on the Oslo Stock Exchange.

The company posted a net loss of 438 million kroner ($76.5 million) for the July through September period, compared with a loss of 1.2 billion kroner in the same period of 2008.

Revenues dropped to 5 billion kroner ($881.1 million) from 6.3 billion kroner.

The company said the sale of its share in a Shanghai mill and the decision to "indefinitely idle" a Dutch plant helped its result. In addition, a strong krone value throughout the quarter resulted in significant currency gains.

"The sharp fall in demand has leveled off, but the market remains challenging," said Chief Executive Officer Christian Rynning-Toennesen.