Jul 28, 2005. /Lesprom Network/. Papermaker NorskeCanada continued to post gains in paper pricing and performance even as heavy planned maintenance spending and lower pulp prices and demand took a toll on results in the second quarter. The second quarter net loss of $30 million, or $0.14 per common share, on sales of $439 million compares with a net loss of $21.8 million, or $0.10 per common share on sales of $462.7 million in the previous quarter. EBITDA totalled $25.4 million in the second quarter, down from $33.6 million in the first quarter. Results were bolstered by the company's achievement of $21 million in performance improvements in the second quarter for a total of $33 million year to date toward the 2005 target of $80 million in performance improvements. In the second quarter, the company posted an after-tax foreign exchange loss of $6.4 million, or $0.03 per common share from the translation of U.S.-dollar-denominated debt, with an operating loss of $19.5 million. This compares to a first quarter after-tax foreign exchange loss of $2.6 million ($0.01 per common share) and an operating loss of $10.7 million. The outlook for most of the company's products remains good as the U.S. economy continues to perform well. Demand for products is rising and price increases were secured for many specialty grades. Demand for pulp and kraft paper products, however, is sluggish and prices have weakened. Newsprint consumption continued to decline, however a price increase was secured in the second quarter. "While maintenance spending this quarter was high, the impact was expected. This was a planned expenditure that positions us well for the traditionally busy season ahead," said Russell J. Horner, President and CEO. "What is far more troubling is the weakness of the pulp market worldwide. Pricing and demand trended downward in major European and Asian markets causing a very disappointing drag on our results this quarter." Looking ahead, the bulk of planned maintenance spending has been completed and the company is entering the high demand period. NorskeCanada is a leading producer of groundwood printing papers in North America. The company also produces market kraft pulp. With five mills employing approximately 3,800 people at sites within 100 miles of each other on the south coast of British Columbia, NorskeCanada has a combined annual capacity of 2.5 million tonnes of product. The company is headquartered in Vancouver, British Columbia.