Feb 09, 2012. /Lesprom Network/. Norske Skog's gross operating earnings in the 4Q were NOK 503 million ($87 milllion), compared to NOK 469 million ($81.2 milllion) in the 3Q, as the company said in a press release received by Lesprom Network. The improved result was caused by somewhat lower costs. The market prices of pulp and recovered paper have fallen substantially from their highest level during the 2Q. A weaker NOK also contributed positively. Even for the year as a whole, gross operating earnings improved, from NOK 1,413 million ($244,747) in 2010 to NOK 1,515 million (262,414) in 2011. The underlying improvement in gross operating earnings for the year was approximately NOK 400 million ($69 million) as there were positive non recurring items in 2010. “These numbers confirm that underlying operations are gradually improving, in line with our guidance through the year. But the market is still challenging, and we keep up our vigorous efforts to improve the group’s competitive position and financial headroom,” says Sven Ombudstvedt, President and CEO of Norske Skog. “Full year 2011 showed a moderate drop in demand for our products, but there are substantial geographical differences, and we need to adapt to a changing market. We are very pleased with the significant improvement in the leverage (net interest bearing debt/EBITDA), and we believe this will continue in 2012,” says Ombudstvedt. During the 4Q the group’s net interest bearing debt was reduced from NOK 8.1 billion ($1.4 billlion) to NOK 7.9 billion ($1.3 billlion). Operating earnings (IFRS) were minus NOK 841 million ($145.7 milllion) in the 4Q, compared to minus NOK 1,883 million ($326,156) in the 3Q 2011 and minus NOK 46 million ($8 milllion) in the 4Q 2010. Operating earnings are strongly affected by restructuring expenses in connection with the closure of Norske Skog Follum and in connection with a rationalisation project at Norske Skog Walsum in Germany and also by lower valuations of commodity contracts and derivates. Underlying interest expenses in 2011 fell from 2010 in line with the reduction of net debt. Net loss was minus NOK 592 million ($102.5 milllion), compared to minus NOK 1,841 million ($318,881) in the 3Q 2011 and minus NOK 260 million ($45 milllion) in the 4Q 2010. 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.