Norske Skog continues to bleed. There was, however, a positive development relating to volumes and capacity utilization, but higher prices for input factors impacted the results negatively. Gross operating earnings for the full year 2010 were 1.4 billion Norwegian Kroner, compared with 2.1 billion in 2009.Net loss in the fourth quarter was -198 million Norwegian Kroner, compared with -244 million in the previous quarter and a net profit of 667 million in the fourth quarter of 2009. Net loss for the full year 2010 was -2.4 billion Kroner (-1.4 billion).”2010 was a very weak year for Norske Skog, especially in Europe, but demand increased and the market balance was slightly better toward the end of the year,” says Sven Ombudstvedt, CEO of Norske Skog. Norske Skog’s sales 2010 amounted to 18.9 billion Kroner (20.3 billion). Cash flow from operations was 397 million Kroner (1.6 billion).Net interest-bearing debt was reduced by 0.1 billion Kroner in the fourth quarter and amounted to 8.9 billion at the end of the year.Results in the segment newsprint Europe were significantly weaker in 2010 than in 2009, due to lower sales prices and higher prices for input factors. The market balance improved during the year, however, which led to increased sales volumes.“We expect that the price of newsprint in Europe will be significantly higher in 2011 than in 2010. However, rising prices for input factors mean that 2011 will also be a challenging year,” said Sven Ombudstvedt.”Our opinion is that further consolidation in the industry is necessary to achieve satisfactory profitability in the future. Tight cost control and additional measures to improve the group’s financial position are the main priority to ensure that Norske Skog is best positioned for a future consolidation of the paper industry," Ombudstvedt added.