-Shares in Oce NV (OCE.AE) plummeted Friday, after the printer maker posted a wider third-quarter net loss on continuing weak sales, and said it will cut costs further with markets set to remain fragile.

Oce's business is under pressure as some of its key markets, such as the construction and manufacturing sectors, continue to decline due to the recession. As a result, the "equipment sales environment remained weak and print volumes were still under pressure throughout the print industry", the company said in a statement.

Oce didn't provide a detailed outlook, but said "markets will remain challenging" in coming months.

However, the financial sector in the U.S., another important market for Oce, shows some signs of recovery, financial chief Hans Kerkhoven told television news channel CNBC. "We're seeing the first green shoots there and orders are coming in from banks and insurers."

Oce reported a net loss for the third quarter of EUR25.7 million, from EUR23.7 million a year earlier, mainly the result of declining sales and restructuring costs. Revenue declined 10% to EUR631 million, lower than analysts' expectations for EUR651 million.

Although sales continued to plummet, Oce said it outperformed the printing industry, in which revenue declined by 19% on average in the first half of this year.

Oce's main competitors are U.S.-based Xerox Corp. (XRX) and Japan-based Canon Inc.(CAJ).

Still, at around 0850 GMT Oce shares traded 5.6% lower at EUR4.09 on a broadly lower midcap market in Amsterdam.

To offset declining sales, Oce is pushing an aggressive restructuring program. It expects to exceed its cost-savings target for 2009 and expects to make more job-cuts than previously announced, Chief Execeutive Van Iperen told Dow Jones Newswires. "Our restructuring program is ahead of schedule", he said.

In June, the company already raised its cost-savings target for 2009 to EUR124 million from EUR80 million and said it wanted to cut 1,500 jobs this year.

Van Iperen declined to say by how far he expects to exceed these targets.

"It is clear that markets are and will remain weak for some time to come", Petercam analyst Eric de Graaf said. "Océ is barely able to keep up with its cost reductions, but the cash situation is improving, limiting the stress level." De Graaf rates Oce at hold.

Company Web Site: www.oce.com

-By Maarten van Tartwijk; Dow Jones Newswires; +31-20-5715-200; maarten.vantartwijk@dowjones.com