NewPage Corporation 2Q 2006 net sales up 18.1% to $490 million

Aug 07, 2006. /Lesprom Network/. NewPage Corporation announced its financial results of operations for the second quarter of 2006. Net sales were $490 million in the second quarter of 2006 compared to $416 million in the second quarter of 2005, an increase of 18.1%. The increase in net sales was largely the result of an increase in coated paper sales volume to 522 000 tonnes in the second quarter of 2006 from 450 000 tonnes in the second quarter of 2005, and an increase in average coated paper prices to $894 per tonne in 2006 from $877 per tonne in 2005. "Second quarter 2006 performance for NewPage was solid, completing our best first half in more than five years," said Mark A. Suwyn, chairman of the board and chief executive officer. "Coated paper sales volume was strong, largely due to increased demand and recent industry capacity closures, and our continued productivity gains added to our improved profitability." Net income for the second quarter of 2006 was $50 million compared to a net loss of $67 million in the second quarter of 2005. Results reflect the June 2006 sale of the hydroelectric generating facilities located on the Androscoggin River in Rumford, Maine, and the April 2006 sale of the NewPage carbonless business operations. EBITDA was $125 million and $24 million for the second quarter of 2006 and 2005, respectively. Significant items in 2006 included a $66 million gain on the sale of the hydroelectric generating facilities, $6 million of non-cash losses from the purchased option contract, and $9 million of non-cash charges and sale-related costs included in loss from discontinued operations. Significant items in 2005 included $20 million of non-cash losses from the purchased option contract and $2 million of transition costs. "During the second quarter, NewPage again successfully offset higher energy-related costs through our programs to increase efficiencies and productivity, further expanding our cost advantage over the industry average and enabling us to better leverage our higher sales prices. We expect crude oil and energy costs to remain volatile for the foreseeable future," continued Suwyn. Richard D. Willett, Jr., president and chief operating officer, added, "The culture at NewPage is energized and keenly focused on cost containment and process flexibility. To help further strengthen our operating model, we are implementing additional efficiency programs, and in particular, the Lean Six Sigma productivity improvement methodology, as key corporate initiatives. We believe these programs will get our entire organization closer to our customers, improve quality and speed, and accelerate our ability to reduce our costs, and therefore expand profitability for our financial stakeholders." NewPage Corporation, headquartered in Dayton, Ohio, is a leading U.S. producer of coated papers in North America. The company produces coated papers in sheets and rolls with many finishes and weights to offer design flexibility for a wide array of end uses. With more than 4 300 employees, NewPage operates integrated pulp and paper manufacturing mills located in Escanaba, Michigan; Luke, Maryland; Rumford, Maine; and Wickliffe, Kentucky. These mills have a combined annual capacity of approximately 2.2 million tonnes of coated paper.