May 09, 2011. /Lesprom Network/. Verso Paper’s net sales for the 1Q 2011 increased $53 million, or 14.6%, as the average sales price for all of the company’s products increased 13.3% compared to the 1Q 2010 and increased 2.5% compared to the 4Q 2010. The improvement in average sales price reflects price increases that went into effect during 2010, as the company said in a press release received by Lesprom Network. Operating income of $14.1 million in the 1Q 2011 compared to an operating loss of $21.5 million in the 1Q 2010. Verso’s gross margin was 15.4% for the 1Q 2011 compared to 7.4% for the same period in 2010 and 17.2% for the 4Q 2010. Sales volume was stable on both a sequential quarter basis and year over year. Verso Paper reported a net loss of $44.6 million in the 1Q 2011, or $0.84 per diluted share, which included $26.5 million of charges from special items, or $0.50 per diluted share, primarily due to $26.1 million in pre-tax net losses related to the early retirement of debt in connection with our debt refinancing. Verso had a net loss of $53.6 million, or $1.02 per diluted share, in the 1Q 2010, which included $1.6 million of charges from special items, or $0.03 per diluted share, primarily due to costs associated with new product development. "Our 1Q adjusted EBITDA results improved $34 million compared to the 1Q 2010. Normally, the first and second quarters are seasonally slow quarters for coated papers, so we view our first quarter results as very positive,” said Mike Jackson, President and CEO of Verso. “Prices continued to improve in the first quarter, consistent with our expectations. We also announced a price increase of $40 per ton, effective April 1 for all of our core products. “All of our announced energy projects are on schedule, and, as previously mentioned, we expect a positive EBITDA impact of $50 million per year, beginning in the 4Q 2012. “During the quarter, we also focused on our capital structure by refinancing our second priority senior secured notes due 2014 and a portion of our first priority senior secured notes due 2014 with new second priority senior secured notes, which extended our maturity date to 2019 and reduced our interest expense.” Verso Paper Corp. produces coated papers, including coated groundwood and coated freesheet, and supercalendered and specialty products.