May 07, 2010. /Lesprom Network/. Verso Paper Corp. reported financial results for the 1Q 2010. 1Q net sales increased 26.7% to $363.6 million in 2010 from $287.1 million in 2009. Net loss of $53.6 million for the 1Q 2010 compared to net income of $54.5 million, including $104.6 million in alternative fuel credits in the year-earlier period, company said in a statement received by Lesprom Network. A net loss before items of $52 million in the 1Q 2010, compared to a net loss before items of $57.9 million, or $1.11 per diluted share in the 1Q 2009. Adjusted EBITDA before pro forma effects of profitability program of $13.1 million for the 1Q 2010 compared to $3.5 million for the 1Q 2009. Verso’s net sales for the 1Q 2010 increased $76.5 million, or 26.7%, as sales volume increased 50.1% compared to last year’s 1Q. The average sales price for all of our products fell 15.6% from the 1Q 2009; however, on a sequential quarter basis the average sales price decreased only 3.1% as our coated paper prices have begun to stabilize and the average sales price for pulp has increased. Verso’s gross margin was 7.4% for the 1Q 2010 compared to 6.3% in 2009. The compression in gross margin for the 1Q 2009 reflects $31.3 million of unabsorbed costs resulting from almost 140,000 tons of downtime. Gross margin remained under pressure in the 1Q 2010 due to continued low sales prices. “Our 1Q business results show significant improvement from a shipments perspective over the 1Q 2009,” said Mike Jackson, President and CEO of Verso. “Total sales volume increased by 46% for paper and 60% for pulp. Pricing, however, continued to be under pressure. Although price fell by 15.6% year over year, the 1Q represents, in our view, the bottom of the pricing cycle. We announced price increases of $70 to $90 per ton on our core products for the second quarter, due to both lower customer inventory levels and increased market place demand. Verso reported a net loss of $53.6 million in the 1Q 2010, which included $1.6 million of charges from special items, primarily due to costs associated with new product development. Verso had net income of $54.5 million, in the 1Q 2009, which included net benefits of $112.4 million, primarily due to alternative fuel mixture tax credits and net gains related to the early retirement of debt. Verso Paper Corp. produces coated papers, including coated groundwood and coated freesheet, and supercalendered and specialty products.