Norske Skog swings to 3Q net loss

OSLO, Norway - Norske Skog, a global newsprint maker based in Norway, said Thursday it swung to a net loss in the third quarter as exchange rate shifts slashed value off the sale of two South Korean plants.

The net loss was 1.2 billion kroner ($177 million), down from a profit of 695 million kroner a year earlier.

The company explained in a news release that the value of the Korean won currency strengthened against the Norwegian krone, meaning the price for two South Korean plants sold during the quarter was about 800 million kroner ($118 million) less than predicted when measured in kroner.

Norske Skog sold the mills as part of a drive to reduce both debt and production capacity, due to oversupply in the market.

The report said revenues for the July through September quarter were 6.32 billion kroner ($936 million) compared to 6.64 billion kroner a year earlier. It said total interest bearing debt had been reduced by 8 percent from a year earlier to 12.6 billion kroner ($237 million) for the quarter.

"We will continue the work to reduce net debt by focusing on improved cash flow from operations and transactions," said chief executive Christian Rynning-Toennesen.

The company's shares closed down 7.7 percent at 22.80 kroner ($3.42) on the Oslo stock exchange.

Norske Skog, with 18 mills worldwide, has repeatedly announced production cuts, layoffs and restructuring measures over the past two years as it struggles, like its competitors, to adapt to falling demand and prices coupled with higher costs.

It is officially listed as Norske Skogsindustrier ASA, but goes by the name Norske Skog.

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On the Net:

http://www.norskeskog.com

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