NewPage has released its operations results for the third quarter of 2010, and the numbers are encouraging. The coated paper manufacturer headquartered in Ohio has a major production plant in Escanaba.
The net sales for the third quarter were $943 million, a 19 percent increase over the third quarter of 2009. George Martin, NewPage's president and CEO, says it's attributable to higher sales volumes. In 2009, sales suffered from the same malaise as the general economy, as magazine and catalog circulation dropped and overall advertising spending was down as well.
In 2010, the results generally have been better than last year, and Martin says that should continue.
"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," says Martin.
Net loss figures were also down over last year; at $67 million this quarter versus $138 million in the third quarter of 2009. However, Martin says the announcement of price increases earlier in the year will mean further increased revenues in coming months.
"We also expect to see continued price realization in the fourth quarter from our previous price announcements," he says.
NewPage also can attribute the improved financials to income from alternative fuel mixture tax credits for the year. Cost-reduction measures and asset sales also have been undertaken at the company, but with higher demand and a decrease in the national production capabilities in the coated paper industry, it has meant no downtime for NewPage plants at all this quarter, a marked improvement over 2009.
Writer: Sam Eggleston
Source: George Martin, NewPage Corporation
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