KapStone Paper and Packaging reported 27.2% increase in 2Q net sales to$199.1 million

Aug 11, 2010. /Lesprom Network/. KapStone Paper and Packaging's net sales for the 2Q 2010 were $199.1 million compared to $156.5 million for the 2Q 2009, an increase of $42.6 million, or 27.2%, the company said in a statement received by Lesprom Network. The increase in net sales was driven by $23.7 million of higher sales volume in the 2Q 2010 compared to the 2Q 2009, mainly due to increased demand reflecting improving economic conditions, $12.2 million due to higher average selling prices and $8 million due to a more favorable product mix reflecting a lower percentage of export linerboard sales. Exchange rates negatively impacted net sales by $1.3 million. Roger W. Stone, Chairman and CEO, stated, "Our strong operating performance in the 2Q 2010 coupled with favorable industry dynamics enabled KapStone to achieve record sales of $199.1 million, excluding the dunnage bag business. Our mills produced 323,000 tons of paper and ran at a 99% operating rate. The $60 per ton price increase for linerboard and kraft paper announced in April should be fully realized next quarter. In July, we announced an additional price increase of $60 per ton for linerboard and $40 to $60 per ton for kraft paper, both expected to be substantially realized in the 4Q 2010. KapStone's order backlog remains very strong. Our wood costs are declining from earlier in the year when unusually wet weather in the Southeast had put upward pressure on wood costs. We decided not to make any voluntary repayments on our low cost debt, and therefore, our cash balance grew to nearly $22 million at June 30th and net debt was $106 million." KapStone Paper and Packaging Corporation produces unbleached kraft paper products and linerboard. The company is the parent company of KapStone Kraft Paper Corporation which includes paper mills in Roanoke Rapids, NC and North Charleston, SC, a lumber mill in Summerville, SC, and five chip mills in South Carolina.