Oct 31, 2008. /Lesprom.com/. Fraser Papers Inc. lost $21.3 million in the 3Q, down from a year-ago profit of $24.7 million, as cost pressures overwhelmed operating improvements. The Toronto-headquartered company, reporting in U.S. dollars, said it realized higher prices and higher shipments for its specialty papers although total paper volumes were flat, and it lowered its cash operating costs despite sharply higher input costs. Efficiency moves included a 29 % reduction in oil consumption. During the quarter Fraser Papers completed an update of its core East Papers complex in Edmundston, N.B., which cut earnings by $5.3 million but resulted in a 12 % improvement in production of lower-cost pulp for the paper mill. The quarterly net loss amounted to $0.42 per share, compared with year-ago earnings of $0.84 cents per share. "Our operating performance has continued to improve over the past 12 months. However, cost pressures have served to offset much of these improvements," stated CEO Peter Gordon. "Over the past several weeks, we have seen prices for a number of our key commodity inputs decrease and a significant weakening of the Canadian dollar. We expect to benefit significantly in the coming quarters by these trends as cost pressures in our business subside from unprecedented levels."