Aug 11, 2010. /Lesprom Network/. Verso Paper’s net sales for the 2Q 2010 increased $103.0 million, or 34.5%, as sales volume grew 36.0% compared to last year’s 2Q. Compared to the 1Q 2010, net sales for the 2Q 2010 increased 10.3% as sales volume grew 6.9%, the company said in a statement received by Lesprom Network. The average sales price for all products decreased 1.1% from the 2Q 2009; however, on a sequential quarter basis average sales price for all of products increased 3.2% as coated paper prices began to increase and the average sales price for pulp continued to rise. Verso’s gross margin was 9.1% for the 2Q 2010 compared to 0.1% for the same period in 2009. The improvement in gross margin reflects no market-related downtime taken in the 2Q 2010 compared to over 153,000 tons of market downtime taken in the 2Q 2009, which resulted in $33.5 million of unabsorbed costs. “Our 2Q results continued to demonstrate significant year over year improvement in both shipments and EBITDA results,” said Mike Jackson, President and CEO Verso. “Year over year, our coated volume was up 41% and sequentially up 4%. As we mentioned in our last quarterly call, we believe March pricing was the low point of the cycle, and based on 2Q pricing, that has proven to be the case. Price improvement for the quarter was slightly positive based on our announced 2Q increases. We expect to see continued upward price improvement in the 3Q, which is being supported by both our order activity and backlogs. Verso reported a net loss of $44.3 million in the 2Q 2010, which included $1.5 million of charges from special items primarily due to costs associated with new product development. Verso had a net loss of $10.2 million in the 2Q 2009, which included net benefits of $60.3 million, primarily due to alternative fuel mixture tax credits and net gains related to the early retirement of debt. Verso reported a net loss of $97.9 million for the first six months of 2010, which included $3.1 million of charges from special items primarily due to costs associated with new product development. Verso had net income of $44.3 million for the first six months of 2009, which included $172.7 million of net benefits, primarily related to alternative fuel mixture tax credits and net gains related to the early retirement of debt. Net sales for the six months ended June 30, 2009, increased 30.7% to $764.7 million from $585.2 million as total sales volume increased 42.4% compared to last year, reflecting improved economic conditions. This increase was partially offset by an 8.3% decline in the average sales price per ton for all of our products, primarily reflecting the decline of coated paper prices throughout 2009. Verso Paper Corp. produces coated papers, including coated groundwood and coated freesheet, and supercalendered and specialty products.