Demand for Norske Skog’s products was weak throughout 2009, and the market is characterised by record-low prices in Europe and continued overcapacity.Norske Skog’s sales 2009 were 20,362 million Norwegian Kroner (26,468). Gross operating earnings after depreciation (EBIT) were – 280 million Norwegian Kroner (100), and Operating earnings (IFRS) were – 1,325 million Kroner (- 1,407). Result after taxes amounted to -1,400 million Kroner (-2,765).For the fourth quarter of 2009, Norske skog reports gross operating earnings (EBITDA) of 472 million Norwegian Kroner, down from 642 million in the third quarter. The fourth quarter result after taxes improved to 667 million Norwegian Kroner from -418 million in the third quarter.Net interest bearing debt was reduced by 4.4 billion Norwegian Kroner in 2009, totalling 9.6 billion at year end.“Major improvements have been made, and the company's financial situation has been strengthened considerably in recent years. The main task ahead is to create a better balance between supply and demand, improve productivity and cut expenses to ensure consistency between cost level and profit," says Sven Ombudstvedt, who took over as CEO of Norske Skog on 1 January.“We have defined several areas with cost-reduction potential. Cooperation with union representatives and mill management, simplification of the organisational structure and strengthening of strategic management functions will be critical success factors going forward,” says Ombudstvedt.