Production to gradually resume today at the Bruck paper mill

Consolidated net sales of $269.3 million in the second quarter of 2021 increased 67 percent compared with $161.4 million in the second quarter of 2020. The increase includes strong volume growth in both segments, including net sales from the Itasa acquisition of $33.2 million. The impact from lower net selling prices was mostly offset by favorable currency effects. Excluding the Itasa acquisition, net sales grew 4% from the first quarter of 2021. Operating loss of $32.6 million in the second quarter of 2021 decreased compared to operating loss of $58.5 million in 2020. The operating loss of $32.6 million in 2021 resulted primarily from non-routine charges of $51.9 million, including asset restructuring costs resulting from the Appleton Mill closure, loss on debt extinguishment, acquisition and integration costs, pension settlement losses and other restructuring items as detailed in the GAAP reconciliation table.

Norske Skog's newly elected board of directors is progressing the recapitalization process and will continue to work to develop a sustainable, industrially based recapitalization proposal to the stakeholders of the group. This recapitalization proposal will be based on the current operating performance and outlook for the Norske Skog group, and will seek to provide a robust industrial and financial platform for the future development of the group. The board's current intention is to make public the industrially based recapitalization proposal on Monday 18 September (at 13.00 CET), after which date the group's financial creditors will be expected to have a 10 business day period until 2 October at 17.00 CET to accept or reject the board's proposal. The recapitalization proposal will be based on the recently announced 2017 gross operating earnings estimate of around NOK 700 million. The recapitalization proposal will reduce the group's debt position and interest payments to a level which leaves Norske Skog as an industrial company with a realistic and long term sustainable capital structure to enable future development of the group in a rather challenging international business environment. Click Read More below for additional detail.

According to the report, total printing-writing paper shipments decreased 25 percent in January compared to January 2020. U.S. purchases of total printing-writing papers decreased 22 percent in January compared to the same month last year. Total printing-writing paper inventory levels increased three percent when compared to December 2020. Uncoated free sheet (UFS) paper shipments decreased 20 percent compared to January 2020 while the inventory level increased three percent compared to December 2020. UFS imports increased 41 percent while exports decreased 40 percent in December 2020.U.S. purchases of coated free sheet (CFS) papers in January decreased 32 percent compared to last January while the inventory level increased two percent compared to December 2020. CFS imports and exports both decreased compared to December 2019, down 21 percent and six percent respectively. Coated mechanical (CM) paper shipments decreased 33 percent compared to January 2020 while the inventory level remained essentially flat (+0.1 percent) compared to December 2020. CM imports decreased 34 percent while exports increased 12 percent in December 2020. U.S. purchases of uncoated mechanical (UM) papers in January decreased 24 percent compared to last January while the inventory level increased 14 percent compared to December 2020. UM imports and exports both decreased compared to December 2019, down 19 percent and eight percent respectively.