BERLIN, N.H. (AP) – Fraser Papers, owner of the paper and pulp mills in Berlin and Gorham, reported higher earnings in its first quarter as a stand-alone company.

Fraser Papers reported earnings of $2 million, or 7 cents per share for the third quarter, which ended Sept. 25. That compares to losses of $10 million for the second quarter and $19 million for the third quarter of 2003.

The Toronto-based company said its earnings resulted from cost reductions and new product development.

The company is gearing up to produce more wet paper and other technical specialty papers in Berlin and Gorham. At its facility in Madawaska, Maine, new products account for 14 percent of shipments. But Fraser’s also warning of an expected seasonal slump in the fourth quarter.

Fraser says there will be downtime at its pulp mills in Berlin and Quebec over the next three months.