Aug 04, 2011. /Lesprom Network/. KapStone Paper and Packaging Corporation reported record results for the 2Q ended June 30, 2011. Record net sales for the quarter ended June 30, 2011 of $214.8 million were up $15.7 million over the same period a year ago. The increase in net sales was driven by $15.8 million of higher average selling prices, $2 million from increased volume, and $1.9 million from favorable exchange rates. A less favorable product mix reduced sales by $1.9 million reflecting lower percentages of DuraSorb® and kraft paper sales, as the company said in a press release received by Lesprom Network. Operating income of $30.6 million for the 2Q increased by $18.1 million compared to the 2010 quarter primarily on $15.8 million of higher average selling prices, $4.8 million of productivity gains, $1.9 million due to favorable exchange rates and $0.8 million of lower stock compensation expenses. Higher depreciation and amortization of $1.7 million, less favorable product mix of $1.3 million and inflation of $0.9 million, primarily on freight and chemical costs, partially offset the gains. Roger W. Stone, Chairman and CEO, stated, "Record net sales of $215 million and record adjusted EBITDA of $44 million demonstrate the growing success of KapStone. Sales benefited from price increases on two product lines partially implemented in the second quarter that should be fully realized in the 3Q. Our mills had an excellent quarter and achieved a new average daily production record of 3,600 tons. Increased productivity coupled with cost savings initiatives reduced our cost per ton by $15 compared to a year ago." KapStone Paper and Packaging Corporation is a leading North American producer of 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. The business employs approximately 1,600 people.