Norske Skog reports 1Q net earnings of NOK 169 million ($30.6 million) Moscow. May 05, 2011. /Lesprom Network/. Norske Skog’s gross operating earnings were NOK 296 million ($53.6 million) in the 1Q 2011. When the energy segment and non-recurring items are excluded, the result is approximately unchanged from 4Q 2010. The price of newsprint in Europe has improved from a very low level, but at the same time the prices of important input factors are rising. The results from newsprint outside Europe are somewhat weaker, as the company said in a press release received by Lesprom Network.
“The improvement for newsprint in Europe is encouraging, but also quite necessary, as last year was so weak. At the same time we still have some distance to cover before we reach satisfactory profitability for the company. Throughout the quarter, we have continued our efforts to reduce fixed costs, sell non-core assets and refinance debt maturing in 2011 and 2012,” says President and CEO Sven Ombudstvedt of Norske Skog.
Operating earnings (IFRS) were NOK 225 million ($40.7 million) in the 1Q, compared to a loss of NOK 46 million ($8.3 million) in the 4Q 2010.
Financial items contributed positively with NOK 45 million ($8.2 million). This includes realized and unrealized currency gains of NOK 216 million ($39 million).
Net earnings were NOK 169 million ($30.6 million), compared to a loss of NOK 198 million ($35.9 million) in the 4Q 2010. The quarter is positively affected by non-recurring items.
The gearing ratio was 0.90 at the end of the quarter, compared to 0.87 at year-end.