Europe’s biggest papermaker Stora Enso Oyj plans to cut magazine, newsprint and pulp capacity as well as jobs after reporting a surprise third quarter loss as wood costs soared and the US dollar fell, according to an online report from Bloomberg. The loss was €439.9 million down from a profit of €58.9 million a year earlier. Sales figures changed only slightly at €3.23 billion. Analysts in a Bloomberg survey had predicted a profit of €134 million on sales of €3.83 billion.

Stora cited rising costs for wood and the dollar’s drop for the operating loss as it joined competitor UPM-Kymmene Oyj in reporting lower earnings. Chief Executive Officer Jouko Karvinen was yet to announce any major closures or disposals in Europe. Stora and other European papermakers have failed to close capacity fast enough to counter global oversupply, or to raise prices fast enough to outpace cost inflation.