UPDATE 3-Norske Skog cost cuts help Q3 beat forecasts

* EBITDA 642 mln crowns vs 592 mln forecast, after cost cuts

* Concerned about strong Norwegian currency

* Sharp fall in demand has levelled off

* But few signs of upturn-CEO

* Shares up as much as 17 pct, outperform sector

By Aasa Christine Stoltz and Ole Petter Skonnord (Adds details, background, comments, share price)

OSLO, Nov 5 (Reuters) - Embattled Norwegian paper producer Norske Skog (NSG.OL: Quote, Profile, Research) detected few signs of an upturn and pledged to cut costs again as it posted a smaller-than-expected drop in third-quarter profit.

The global financial crisis has compounded years of struggle by Norske Skog and the rest of the industry with soft demand and overproduction. The debt-laden newsprint and magazine paper maker has gone through repeated restructuring of its activities and its loans to stay afloat.