Norske Skog's operating result in the third quarter was strongly affected by impairments of 1,883 million Norwegian Kroner. Of this, 927 million relate to Norske Skog Parenco in the Netherlands.Sales prices for newsprint in Europe during the quarter increased from the same period last year, and there were also some price increases compared to the second quarter this year. Production volumes were in line with the second quarter, but somewhat lower than the third quarter last year. Deliveries were somewhat lower than in the preceding quarter. Costs in the third quarter were lower compared to the second quarter, but still at a high level compared to the third quarter of 2010. Newsprint outside Europe was positive in Australa and weak in South America.Magazine paper showed normal operations at Norske Skog Saugbrugs. After having been halted following a fire in February, all machines at Saugbrugs mill were again operational at the end of the second quarter and ran as normal throughout the third quarter. During the autumn, there has been an ongoing evaluation of Norske Skog’s future production capacity in Europe, including in Norway. This process is not yet concluded.“Even though our earnings improved in the third quarter compared to the second quarter, they are still far from satisfactory. Therefore, we will make sure that Norske Skog has a capacity that is aligned with the market we observe,” says Sven Ombudstvedt, CEO of Norske Skog.Stable prices and volumes for newsprint and magazine paper are expected in the fourth quarter. Input costs are expected to remain at a high level, but lower prices for market pulp and recovered paper are expected to contribute to a certain reduction. Gross operating earnings for the year are expected to be somewhat stronger than in 2010. /KB