Business
Neenah Paper Reports 2007 Second Quarter Results
Neenah Paper Reports 2007 Second Quarter Results.
About this update from Northpalm Capital Corp.
[{"type":"text","content":"\n\n\n\nALPHARETTA, Ga., Aug. 8 /CNW/ -- (NYSE: NP) - Neenah Paper, Inc. today\nreported income from continuing operations for the second quarter 2007 of $3.3\nmillion, or $0.22 per diluted common share, compared with income from\ncontinuing operations of $84.2 million, or $5.68 per diluted common share, for\nthe second quarter of 2006. Consolidated net income in the second quarter of\n2006 included an after-tax gain of $75.7 million, or $5.11 per diluted common\nshare, related to the sale of timberlands. Net sales of $258.1 million for the\nsecond quarter 2007 increased more than 80 percent versus the prior year and\nincluded sales related to the company's acquisitions of Neenah Germany and Fox\nRiver Paper Company.\n\n\nCommenting on results, Sean Erwin, Chairman and Chief Executive Officer\nsaid, "During the quarter, our paper businesses delivered solid results\ndespite challenging market conditions and we made continued progress with key\ninitiatives. In Fine Paper, we are executing our integration plan to deliver\nsynergies following the Fox River purchase. Our Technical Products business is\nperforming well, delivering year-on-year growth with an improved sales mix of\nhigher value products both in the U.S. and in Germany. We have improved\nproductivity at the Pictou mill this year and the pulp market remains strong,\nalthough Pulp earnings, as expected, were significantly lower as a result of\nthe timing and scope of our annual maintenance shutdown, which occurred in May\nof this year as opposed to October of last year."\n\n\nFine Paper quarterly net sales of $103.6 million increased 81 percent,\nfrom $57.3 million last year, primarily due to the addition of Fox River.\nOperating income was $13.2 million in the second quarter of 2007, compared to\n$15.5 million in the second quarter of 2006. Operating income in the current\nquarter was reduced by approximately $1.2 million as a result of purchase\naccounting standards that required Fox River's beginning inventory to be\nrevalued to market selling prices. In addition, higher prices for pulp and\nincreased distribution costs in the quarter were only partly offset by higher\nselling prices. Increased volumes and efficiencies from the Fox River\nacquisition also contributed positively to operating income for the quarter.\n\n\nTechnical Products net sales were $102.5...