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Neenah’s Sales Up Slightly

Technical Products’ sales rise 5%

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By: Tara Olivo

Associate Editor at Nonwovens Industry, Rodman Media

Neenah Paper reported consolidated net sales increased 1% to $232.9 million compared with $231.6 million in the third quarter of 2015. Net sales increased as a result of incremental revenues related to the August 1, 2015, FiberMark acquisition and organic volume growth in Technical Products. These were partly offset by a decline in average net selling prices, due mostly to the mix of products sold in both segments, and lower volumes in Fine Paper and Packaging.

Selling, general and administrative (SG&A) expense of $21 million in the third quarter of 2016 decreased from $21.2 million in the prior year primarily due to timing of certain expenses.

Operating income of $26.9 million in 2016 increased 10% compared with $24.4 million in 2015. Higher income in 2016 resulted from increased volume, reduced manufacturing costs due to lower material prices, acquisition synergies and improved operational efficiencies, as well as lower integration and restructuring costs. Combined, these items more than offset impacts from a lower-priced sales mix. Excluding $1.2 million and $2.9 million of costs in 2016 and 2015, respectively, for integration and restructuring, adjusted operating income of $28.1 million increased 3% compared with the prior year.

In Technical Products, net sales of $114.1 million increased 5% compared with $108.9 million in the prior year. The increase in revenues resulted from acquired sales and organic volume growth led by transportation filtration, and tape and abrasive backings. Sales growth due to higher volumes was only partly offset by lower net selling prices due to mix and modest reductions in selling prices for grades with contractual adjusters for certain input costs.

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