Verso Paper swings to profit in first quarter
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(AP) - Coated paper company Verso Paper Holdings LLC said Thursday it swung to a profit in the first quarter as higher prices and volumes drove revenue.
For the period ended March 31, the company reported income of $4 million, compared with a loss of $29.9 million in the year-ago quarter.
Revenue rose 26 percent to $453.9 million, from $359.8 million in the first quarter of 2007.
Total sales volume increased 12 percent, while average sale prices increased 13 percent.
Cost of sales increased 18 percent to $407.6 million, from $345.9 million in the same period in 2007, primarily driven by the higher volume, the company said.
"Our average paper prices have steadily increased since second quarter 2007, and we expect this trend to continue in 2008 as operating rates remain high due to industry consolidation, capacity closures and lower imports," said President and Chief Executive Mike Jackson. "While demand decreased compared to fourth quarter due to expected seasonal trends, volumes were significantly higher year over year."
Late Wednesday, Verso priced an initial public offering of 14 million shares at $12 apiece. Originally, the IPO was expected to total nearly 18.8 million shares and price between $16 and $18 each.
The shares are expected to begin trading Thursday on the New York Stock Exchange under the symbol "VRS."