Business
Neenah Paper, Inc. Reports 2005 Third Quarter Results
Neenah Paper, Inc. Reports 2005 Third Quarter Results.
About this update from Northpalm Capital Corp.
[{"type":"text","content":"\n\n\n\n\nALPHARETTA, Ga., Nov. 3 /CNW/ -- (NYSE: NP) - Neenah\nPaper reported today a third quarter 2005 net loss of $1.5 million, or $0.10\nper diluted common share. Net income in the third quarter of 2004, during\nwhich operations were part of Kimberly-Clark, was $4.5 million and did not\ninclude interest expense or other costs attributable to operating as a stand-\nalone company.\n\nTHIRD QUARTER RESULTS\nConsolidated net sales for the third quarter of 2005 were $167.7 million\nversus $188.9 million in the third quarter of 2004. Decreased pulp sales\ngenerated most of the decline and were largely due to the May 1 shutdown of\nthe No. 1 Mill at Terrace Bay. The balance of the decrease in consolidated\nsales was primarily from lower revenues of Technical Paper products.\nConsolidated operating income for the third quarter of 2005 was $1.5 million,\ncompared to $7.8 million for the prior year period. Operating results in 2005\ncontinued to reflect higher discounts on pulp sales to Kimberly-Clark\nfollowing the spin-off and incremental expenses as a stand-alone company.\nAdditionally, in the third quarter of 2005, costs were approximately $10\nmillion higher than the third quarter of 2004 due to the combination of a\nstronger Canadian dollar, which increased costs by $6 million, and higher\nprices for energy and materials, which increased costs by $4 million. Partly\noffsetting these factors were cost savings programs and significantly lower\nmanufacturing costs in pulp due to spending reductions, efficiencies, and\ntiming associated with annual maintenance downs.\nFine Paper segment net sales of $52.2 million in the third quarter of 2005\nwere 1 percent below the same quarter of 2004. Volumes declined 5 percent due\nin part to reduced sales of lower margin, special order business; however,\naverage prices increased 4 percent, reflecting the improved sales mix and\nslightly higher selling prices. Operating income for this segment was\n$12.3 million in 2005, compared with $14.2 million in the same quarter of\n2004. In 2005, operating income reflected increased costs for raw materials\nand energy and higher allocated corporate expenses.\nIn the Technical Paper segment, third quarter sales of $28.7 million were\n12 percent lower than 2004 primarily due to a 9 percent decrease in unit\nvolumes. The volume decline resulted from exiti...