Norske Skog reported 3Q gross operating earnings of NOK 469 million ($83.5 million)

Nov 04, 2011. /Lesprom Network/. Norske Skog’s gross operating earnings were NOK 469 million ($83.5 million) in the 3Q. This is significantly better than in the 2Q. The improvement is due to lower costs, higher volumes and better prices, as the company said in a press release received by Lesprom Network. Cash flow from operations also improved markedly, and net interest-bearing debt was reduced. “The 3Q clearly shows a positive change after a rough period for Norske Skog. Even so, we remain committed to doing everything possible to turn Norske Skog into a company showing satisfactorily profitability. It is still necessary to align our European production capacity with future demand,” says President and CEO of Norske Skog, Sven Ombudstvedt. Operating earnings (IFRS) were minus NOK 1 883 million ($335,584), compared to minus NOK 202 million ($36 million) for the 2Q 2011 and minus NOK 326 million ($58 million) for the 3Q 2011. The operating result was strongly affected by impairments of NOK 1 883 million. Of these, NOK 927 ($165) relate to Norske Skog Parenco in the Netherlands. The result from financial items was minus NOK 253 million ($45 million). In the 2Q financial items were minus NOK 70 million ($12.5 million), and in the 3Q 2010 there was a positive result of NOK 49 million ($8.7 million). The net loss was NOK 1 841 million ($328,099), compared to a loss of NOK 280 million ($50 million) in the 2Q 2011 and a loss of NOK 244 million ($43.5 million) in the 3Q 2010. Net interest-bearing debt was reduced from NOK 8.4 billion ($1.5 billion) to NOK 8.1 billion ($1.44 billion) during the quarter. Norske Skog has positioned itself as one of the world’s largest suppliers of newsprint and an important source of paper for the magazine and directory sectors.