Neenah Paper Reports 2007 Fourth Quarter and Full Year Results

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[{"type":"text","content":"\n\n\n\nALPHARETTA, Ga., March 12 /CNW/ -- Neenah Paper, Inc. (NYSE: NP) today\nreported income from continuing operations for the fourth quarter 2007 of $2.9\nmillion, or $0.19 per diluted common share, compared with income from\ncontinuing operations of $3.2 million, or $0.21 per diluted common share, for\nthe fourth quarter of 2006. Consolidated net income in the fourth quarter of\n2007 included an after-tax charge of $3.2 million, or $0.21 per diluted common\nshare, to recognize settlement costs for litigation related to Terrace Bay\nretiree benefits.\n\n\nConsolidated net sales of $256 million in the fourth quarter of 2007\nincreased 44 percent compared with the fourth quarter of 2006. Operating\nincome of $11.6 million in the fourth quarter of 2007 included a $5.2 million\npre-tax charge for the Terrace Bay litigation settlement discussed above, and\nwas 29 percent ahead of the $9.0 million reported in the fourth quarter of\n2006. While operating income significantly exceeded prior year levels, net\nincome from continuing operations was lower due to increased tax expense.\n\n\nCommenting on results, Sean Erwin, Chairman and Chief Executive Officer\nsaid, "Overall, we saw significant change in Neenah Paper over the past year\nas we gained scale through acquisitions that expanded both our capabilities\nand our product portfolio and provided us a more global platform. Fourth\nquarter results continued to reflect increasing raw material and energy\nprices, however, the selling price increases we implemented in the fourth\nquarter and early this year are helping to offset such cost increases. While\nthe quarter also included expenses in Fine Paper for the integration of Fox\nRiver, these costs are now largely complete and will allow us to realize\nbenefits going forward. Pulp operations also performed very well, setting all-\ntime productivity records that helped to improve costs and volume growth. Our\nbalance sheet and cash flows remain strong, giving us adequate liquidity and\nflexibility, and in the fourth quarter we used available free cash flows to\npay down debt for the third consecutive quarter."\n\n\nFine Paper fourth quarter 2007 net sales of $95.3 million increased 74\npercent, from $54.7 million last year, primarily due to higher volumes from\nthe acquisition of Fox River. Operating income was $11.7 millio...

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