Verso Corp. Results Take a Hit From Challenging Market Conditions

SEATTLE (Scrap Monster): Verso Corporation reported financial results for the third quarter of 2019.

The net sales during the quarter were down from $704 million in third quarter of 2018 to $616 million. The decline in net sales was mainly attributed to unfavourable price/mix and falling sales volume. The quarterly sales volume registered year-on-year decline from 754,000 tons to 679,000 tons. The drop in demand for graphic paper coupled with increased imports of the material impacted the sales volume. Meantime, Verso Corp. witnessed increase in sales volume of specialty papers, packaging papers and market pulp.

The net income of $30 million was down significantly when compared to $86 million in Q3 2018. The adjusted EBITDA too recorded notable decline, falling from $108 million to $64 million on a year-on-year basis. The operating income for the three-month period ending September 30, 2019 was $28 million, when compared to operating income of $80 million for the corresponding three-month period in 2018.

The net sales for the first nine months of the current year recorded sharp decline by $130 million over the prior year. The company reported operating loss of $47 million in Jan-Sep ’19. This compares with operating income of $89 million during the nine months ended September 30, 2018.

Commenting on the result, Leslie T. Lederer, Interim Chief Executive Officer, Verco Corporation noted that the company managed to balance its supply with demand amidst challenging market conditions. The company reduced inventory by $43 million from the prior quarter, he added.

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