US-based speciality and packaging paper manufacturer Verso has reported strong financial results for the third quarter (Q3) of 2021 (FY21), which ended on 30 September.
During the quarter, the company’s net sales rose by 11% to $339m compared to the same period of last year (FY20), representing a 3% increase against the second quarter (Q2) of the year.
Verso’s net income increased was $58m in Q3 compared to a net loss of $31m in the same period of FY20.
The company posted an operating income of $35m, having registered a loss of $44m in Q3 2020.
Its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter was $67m, compared to $12m in Q3 2020.
Verso president and CEO Randy Nebel said: “This was a strong quarter for Verso, in which our people drove robust cash flow, reflecting steadfast execution and positive macro trends, including price increases, for our business.
“Over the past few years, Verso has streamlined our operations and reduced costs while strategically investing in projects to enhance our ability to support our customers.
“Additionally, strong demand with reduced industry capacity has led to healthy order rates across our product lines.
“Verso maintains a strong, debt-free balance sheet, which provides a solid foundation for generating long-term value for shareholders.”
For the first three quarters of FY21, Verso’s net sales fell by $95m, representing a 9% decrease.
The company’s operating loss was $63m, against a $10m loss in the first nine months of FY20.
During this nine-month period, Verso’s total company sales volume also declined to 1.1 million tonnes from 1.3 million tonnes a year earlier.
Verso expects its full-year capital expenditures to be between $60m and $65m for FY21. It has also forecast an increase in its cash position.