Business
Neenah Paper, Inc. Reports Fourth Quarter Results
Neenah Paper, Inc. Reports Fourth Quarter Results.
About this update from Northpalm Capital Corp.
[{"type":"text","content":"\n\n\n\n\nALPHARETTA, Ga., March 8 /CNW/ -- Neenah Paper (NYSE: NP)\ntoday reported a net loss of $37.7 million for the fourth quarter 2005, or\n$2.56 per diluted common share, compared with a net loss of $69.7 million, or\n$4.73 per diluted common share, during the fourth quarter of 2004. Fourth\nquarter 2005 results included after-tax charges for the impairment of Terrace\nBay pulp assets of $33.1 million, or $2.25 per diluted common share. In the\nfourth quarter of 2004, $72.0 million, or $4.89 per diluted common share, was\nincluded for the impairment charge of Terrace Bay assets. Excluding these\nimpairment charges, fourth quarter results would have been a loss of $0.31 per\ndiluted common share in 2005 and earnings of $0.16 in the fourth quarter of\n2004. Neenah Paper was part of Kimberly-Clark through November 30, 2004 and\nresults prior to the spin-off date did not reflect higher pulp discounts,\ninterest expense, corporate costs and other changes attributable to operating\nas a stand-alone company.\nFor the Fine Paper segment, fourth quarter 2005 net sales of $55.4 million\nwere approximately equal with the prior year period, as higher average selling\nprices offset a three percent decline in volumes. Operating income for the\nquarter was $13.1 million in 2005 compared with $16.2 million in 2004. The\ndecline in income was primarily attributable to higher costs for energy and\nraw materials in 2005, along with lower manufacturing volumes and higher\nstand-alone corporate expenses.\nTechnical Products segment net sales of $31.6 million in the fourth\nquarter of 2005 increased three percent compared to the same period of 2004,\nprimarily as a result of increased volumes. Operating income for the quarter\nwas $2.5 million in 2005 compared with $4.6 million in the fourth quarter of\n2004. Reasons for the decline included higher costs for energy and raw\nmaterials, a less profitable sales mix and increased research and development\nand stand-alone corporate expenses.\nPulp segment net sales of $96.8 million in the fourth quarter were two\npercent below the same period of 2004. Higher price discounts and volume\ndeclines, the latter due in part to the May 2005 shutdown of the Terrace Bay\nNo. 1 line, were only partially offset by an improved sales mix and higher\nmarket prices. In 2005, the fourth quarter operating loss was $...