NewPage reports net loss of $67 million

NewPage Corporation has reported a net loss of $67 million in its third quarter on sales of $943 million.

These results can be compared to a net loss of $138 million in the third quarter of 2009 on sales of $791 million.

The increase in net sales resulted primarily from higher sales volumes. Net sales in the third quarter of 2009 were affected by decreased advertising spending and magazine and catalog circulation that was largely attributable to general economic factors and inventory reductions by customers.

"We expect our business for the remainder of the year to be generally consistent with trends at the end of the third quarter of 2010," said George F. Martin, president and chief executive officer for NewPage. "We also expect to see continued price realization in the fourth quarter from our previous price announcements."

As a result of higher demand and lower industry production capacity, NewPage did not take any market-related downtime in the third quarter of 2010 compared to 101,000 tons in the third quarter of 2009.

"NewPage ended the third quarter of 2010 with liquidity of $125 million, consisting of $8 million of cash and cash equivalents and $117 million available for borrowing under the revolving credit facility," said David J. Prystash, senior vice president and chief financial officer for NewPage.

On November 3, 2010, NewPage completed the sale of certain assets of the NewPage Port Hawkesbury mill in Nova Scotia, Canada to Nova Scotia Power Inc. for creation of a 60-megawatt biomass co-generation facility for approximately CDN $80 million. "The proceeds from the asset sale of the Port Hawkesbury biomass project will enhance year-end liquidity," added Prystash.

Source: NewPage