KapStone Paper and Packaging reported a 42.6% increase in consolidated revenue of $306.3m in the second quarter of 2012, an increase from $214.8m in the same period of 2011.
According to the North American paper producer the increase is mainly due to the acquisition of USC, which added $97.2m of additional revenue based on selling 1.6 billion square feet of corrugated products compared to none in 2011.
During the quarter, 324,000t of paper was sold, up from 329,000t in 2011.
Due to lower export containerboard prices, which have been recovering since bottoming out in March 2012, the company’s average selling price decreased by $10.
The company’s operating income of $32.5m increased by $1.8m, or 6%, compared to the 2011 second quarter.
The financial performance progress reflects benefits from the acquisition, which were partially negated by lower selling prices, lower sales volume, unfavourable foreign exchange rates, inflation on input costs and acquisition start up expenses.
KapStone Paper and Packaging chairman and chief executive officer Roger Stone said the company’s mills produced 390,000t of paper for the quarter.
"The USC acquisition also performed well and added $10m in adjusted EBITDA," Stone added.
Capital expenditures for the quarter touched $16.5m, and for 2012, the company estimates capital expenditures of $64m.