NewPage announced its results of operations for the third quarter of 2010.

November 4, 2010 by timbercommunity

 NewPage Corporation (NewPage) today announced its results of operations for the third quarter of 2010.  Net sales were $943 million in the third quarter of 2010 compared to $791 million in the third quarter of 2009, an increase of $152 million, or 19 percent.  The increase in net sales resulted primarily from higher sales volumes.  

Net sales in the third quarter of 2009 were affected by decreased advertising spending and magazine and catalog circulation that was largely attributable to general economic factors and inventory reductions by customers. "We expect our business for the remainder of the year to be generally consistent with trends at the end of the third quarter of 2010," said George F. Martin, president and chief executive officer for NewPage.  "We also expect to see continued price realization in the fourth quarter from our previous price announcements."

Net loss attributable to NewPage was $(67) million in the third quarter of 2010 compared to $(138) million in the third quarter of 2009. The improvement was primarily a result of higher sales volumes and lower interest expense partially offset by lower other income recognized for alternative fuel mixture tax credits. Interest expense in the third quarter of 2010 was $93 million compared to $194 million in the third quarter of 2009, primarily as a result of a charge of $133 million on the refinancing of debt and related transactions in the third quarter of 2009, offset by higher interest rates on outstanding debt in 2010.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization as further adjusted as shown in the attached reconciliation) was $106 million in the third quarter of 2010 compared to $140 million in the third quarter of 2009.