Results of Operations – Comparison of the Third Quarter of 2012 to the Third Quarter of 2011
|Three Months Ended|
|(Dollars in thousands)||2012||2011|
|Costs and expenses:|
Cost of products sold - (exclusive of depreciation, amortization, and depletion)
|Depreciation, amortization, and depletion||28,138||31,190|
|Selling, general, and administrative expenses||17,499||19,490|
|Restructuring and other charges||97,018||
|Total operating expenses||444,488||426,234|
|Operating income (loss)||(71,484||)||30,602|
|Other income, net||(21||)||(44||)|
|Loss before income taxes||(104,744||)||(201||)|
|Income tax (benefit) expense||(45||)||146|
Net Sales. Net sales for the third quarter of 2012 decreased 18.4%, to $373.0 million from $456.8 million in the third quarter of 2011, led by a quarter-over-quarter decline in the price of pulp. Additionally, total sales volume was down 14.9% compared to the third quarter of 2011, which was driven by the shutdown of three paper machines late last year and the closure of the Sartell mill in the third quarter of this year, as well as a 4.0% decrease in the average sales price per ton for all of our products.
Net sales for our coated papers segment decreased 19.7% in the third quarter of 2012 to $300.9 million from $374.5 million for the same period in 2011, due to a 17.4% decrease in paper sales volume, which was driven by the shutdown of three paper machines late last year and the closure of the Sartell mill in the third quarter of this year. The average sales price per ton of coated paper decreased 2.8% compared to the same period last year.