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Paper Recycling August 09, 2018 01:30:53 PM

Verso Corp. Recorded Solid Growth Across Segments in Second Quarter 2018

Paul Ploumis
ScrapMonster Author
For the upcoming quarter, the company foresees net sales of $700-720 million.

Verso Corp. Recorded Solid Growth Across Segments in Second Quarter 2018

SEATTLE (Scrap Monster): Verso Corporation reported strong results for the second quarter of 2018. The company reported solid year-on-year improvement across various segments. The net sales surged higher by 10% to total $644 million, when compared to the second quarter of 2017.

According to company press release, the strong jump in sales was primarily attributed to improved average pricing, driven by price increases across product lines. The production of specialty papers was boosted by increased output from the Stevens Point and Androscoggin mills. However, the overall volumes declined during Q2, mainly on account of planned outage at Quinnesec Mill. The sales volume of other coated papers declined during the quarter.

The net sales for the first six months ended June 30, 2018 increased by 7%, compared to the first half of 2017. The pulp sales decreased during this period, while sales volume of specialty papers remained strong.

ALSO READ: CVD Order on Supercalendered Paper from Canada Terminated

For the upcoming quarter, the company foresees net sales of $700-720 million. The capital expenditures are expected to be approximately $20-25 million, including the proposed investment towards restart of No.3 paper machine at the Androscoggin Mill. Also, the earnings are projected to increase substantially when compared with Q2 this year.

For the full year 2018, Verco Corp. expects the revenue and pricing to remain favorable, compared with 2017. The headwinds in logistics and rise in other input costs are likely to impact yearly performance. The capital expenditures for the whole year is projected at around $60-70 million. Also, the second half of the year is likely to deliver better income and EBITDA than the first half of 2018 as well as the second half of 2017. The company expects receipt of approximately $42 million as payments against trade case settlements.

The company is well-positioned to capitalize on the recently announced mill upgrades and improving market conditions, said B. Christopher DiSantis, Chief Executive Officer, Verso.

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