* Q2 loss C$0.01/shr vs yr-ago loss C$0.34/shr
* Revenue falls 36 pct
* Shares jump 13 pct
July 30 (Reuters) - Catalyst Paper CTL.TO posted a narrower second-quarter loss as it took cost-cutting measures and curtailed paper and pulp production capacity to address lower demand.
The pulp and paper maker posted a net loss of C$1.9 million, or 1 Canadian cent a share, down from a loss of C$124.3 million, or 34 Canadian cents a share, a year ago.
Excluding items the Richmond, British Columbia-based company posted a loss of C$25.6 million, compared with a loss of C$22.7 million, a year earlier.
Revenue fell 36 percent to C$291.5 million.
"We are seeing a deep cyclical downturn in our industry as well as demand shifts and structural changes that will have a lasting impact on our business model," Chief Executive Richard Garneau said in a statement.
Catalyst curtailed 33 per cent of its paper and 100 per cent of its pulp production capacity in the quarter, the company said.
"No improvement in market conditions is expected through the remainder of 2009," Catalyst said.
"A level of production curtailment consistent with that during the second quarter is foreseen for the third quarter," it said.
The company's shares were up 2 Canadian cents, or 13 percent, at 18 Canadian cents Thursday afternoon on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Ratul Ray Chaudhuri)