May 12, 2011. /Lesprom Network/. NewPage Corporation announced its results of operations for the 1Q 2011. Net sales were $904 million in the 1Q 2011 compared to $817 million in the 1Q 2010, an increase of $87 million, or 11%. The increase was primarily the result of higher sales volume of core paper and higher average core paper prices in the 1Q 2011 compared to the 1Q 2010. Gross margin (loss) for the 1Q 2011 was 5.1% compared to 3.9% in the 1Q 2010, primarily as a result of higher average core paper sales prices in the 1Q 2011. During the 1Q 2011, North American coated paper demand was flat compared to the 1Q 2010. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization as further adjusted as shown in the attached reconciliation) was $85 million in the 1Q 2011 compared to $15 million in the 1Q 2010. The improvement was primarily the result of higher average paper prices and higher sales volume of core paper. Net loss was $88 million in the 1Q 2011 compared to $175 million in 1Q 2010. "Overall our mill operations ran very well during 1Q 2011, and volume was in line with our seasonal expectations. We also saw continued price improvement in our core paper products during the quarter," said George F. Martin, President and CEO for NewPage. "Our business also experienced significant increases in our input costs during the 1Q 2011 due to higher prices for wood, purchased pulp, certain petroleum-based chemicals and transportation, and we expect this trend to continue throughout 2011." During the 1Q 2011, NewPage permanently closed the Whiting, Wisconsin mill. NewPage did not take any market-related downtime in the 1Q 2011 compared to 39,000 tons in the 1Q 2010. NewPage Corporation is the largest coated paper manufacturer in North America, based on production capacity. The company's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint and specialty papers. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada.