NewPage posts quarterly loss of $138 million

NewPage Corporation has announced its results of operations for the third quarter of 2009.

Net sales were $791 million in the third quarter of 2009 compared to $1,126 million in the third quarter of 2008, a decrease of $335 million, or 30%. The decrease in net sales reflects lower sales volumes and lower average prices in the third quarter of 2009 compared to the third quarter of 2008.

Net loss attributable to NewPage was $(138) million in the third quarter of 2009, primarily as a result of a charge of $133 million on the refinancing of debt and related transactions. The net loss attributable to NewPage for the third quarter of 2008 was $(61) million.

Debt covenant EBITDA (earnings before interest, taxes, depreciation and amortization) was $119 million for the third quarter of 2009 compared to $151 million for the third quarter of 2008. The difference is primarily a result of lower sales volumes and lower average sales prices, partially offset by the benefit of alternative fuel mixture tax credits, reduction in raw material costs and substantial on-going cost productivity.

On the challenging economic conditions, Richard D. Willett, Jr., NewPage President and Chief Executive Officer, stated, “The decline in demand for coated paper during the third quarter of 2009, in comparison to the third quarter of 2008, was primarily the result of decreased advertising spending and magazine and catalog circulation, and was largely a continuation of the same macroeconomic forces we saw in the first half of the year, exacerbated by increased low-priced imports from China and Indonesia. Since February of 2009, we’ve seen volume trending upward in our business, primarily as customer de-stocking of their on-hand inventory ceases. Today, we are experiencing seasonal strengthening and some benefits of the postal service’s volume incentives for catalogers. We believe as the U.S. economy recovers, so will our paper volume. To ensure that we participate in that recovery on a level playing field, we have filed new trade cases to address the growth of unfairly traded coated sheet products from China and Indonesia in the U.S.”

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NewPage announces third quarter 2009 financial results (NewPage)