UPDATE 1-Fortress Paper Q1 profit falls 14 pct

* Q1 EPS C$0.35 vs. C$0.38 last year

* Sales drop 6 pct

May 11 (Reuters) - Fortress Paper Ltd (FTP.TO) reported a 14 percent drop in first-quarter profit as its specialty paper segment faced a challenging quarter due to the global economic slowdown.

"Specialty papers from our Landqart mill continue to experience challenges as a result of the global economic slowdown and will be a specific area where we intend to focus on implementing cost saving initiatives," CEO Chad Wasilenkoff said in a statement.

The producer of security and specialty papers posted net income of C$3.6 million ($3.13 million), or 35 Canadian cents per share, down from C$4.2 million, or 38 Canadian cents per share, a year ago.

Sales dropped 6 percent to C$46.6 million, the company said.

Analysts were expecting earnings of 27 Canadian cents per share, before items, on revenue of C$47.8 million, according to Reuters Estimates

Fortress Paper shares, which have gained 42 percent in the last one month, closed at C$7.49 Monday on the Toronto Stock Exchange. ($1=1.149 Canadian Dollar) (Reporting by R. Manikandan in Bangalore; Editing by Anil D'Silva)