Gannett Inc. (GCI) Chief Financial Officer Gracia Martore said Monday that the company's newsprint expense in the third quarter was down 43% and she expects newsprint prices to remain under pressure into 2010.

On a conference call following Gannett's third-quarter earnings release, Martore said newsprint costs are down due to a "sizable imbalance in supply versus demand."

Gannett's earnings results beat expectations, partly due to cost cuts, and Martore said newsprint expense was a "significant factor" in its expense reductions. Its overall operating expenses fell 14%.

-By Nat Worden, Dow Jones Newswires; 212-416-2472; nat.worden@dowjones.com