Paper Manufacturer Announces Price Increases
NewPage reports $21 million net loss for second period.
NewPage Corporation, the coated magazine paper manufacturer that has been consolidating its product offering after its acquisition of Stora Enso North America earlier this year, has become the latest to announce price increases for several of its products.
For new orders placed on October 6, or for orders with confirmed delivery dates on or after October 13, NewPage is increasing prices by $3 per one hundred pounds for the following products:
▪ Arbor Web and Arbor Web Plus
▪ Productolith Web
▪ Sterling Ultra Web (including caliper products)
▪ Orion Web
▪ Vision Web
For new orders on or after October 6, and confirmed shipments on or after October 9, prices for the following products also have been increased by $3 per one hundred pounds:
▪ all Fortune sheet-fed products (including sheeter rolls)
▪ all Anthem sheet-fed products (including sheeter rolls)
▪ all Gusto sheet-fed products (including sheeter rolls)
▪ Productolith Points Web
Earlier this month, NewPage said it was closing its paper mill in Kimberly, Wisconsin, affecting 475 employees. The company attributed the closing to a decrease in demand and an increase in costs.
For the second quarter, NewPage reported $1.06 billion in revenue, up from $945 million during the same period in 2007-an increase of 115 percent, due primarily to the SENA acquisition. The company, however, posted a $21 million net loss for the period. NewPage says it incurred $13 million in integration-related costs during the quarter and $8 million in pre-tax charges.
NewPage also had a $68 million interest expense for the second quarter, due primarily to higher outstanding debt balances from financing for the acquisition.
During the first quarter, NewPage reported a net income was $7 million, up from a $20 million loss during the same period last year. Stora Enso sold its U.S. holdings to New Page for about $1.7 billion. The deal closed earlier this year.