| AP 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. Kenneth Sivertsen, an analyst at Arctic Securities, said the group "delivered profits slightly above expectations" and managed "to cut costs in this quarter more than the market was expecting." The group slashed 9 percent of its work force in June due to slumping demand and predicted Thursday that layoffs for 2009 will total 1,300, leaving the paper maker with 5,600 employees. Norske Skog, with 16 mills in 12 countries, has repeatedly announced production cuts, layoffs and restructuring measures over the past three years as it has struggled, like its competitors, to adapt to falling demand and prices coupled with higher costs. Rynning-Toennesen said the company's future focus would center on "ensuring good cost control, optimal capacity management and continued operational improvement." The manufacturer is officially listed as Norske Skogsindustrier ASA, but goes by the name Norske Skog.
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