Neenah Paper Reports 2008 First Quarter Results

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[{"type":"text","content":"\n\n\n\nALPHARETTA, Ga., May 7 /CNW/ -- Neenah Paper, Inc. (NYSE: NP) today\nreported income from continuing operations for the first quarter 2008 of $8.5\nmillion, or $0.57 per diluted common share, compared with income from\ncontinuing operations of $10.1 million, or $0.67 per diluted common share for\nthe first quarter of 2007. Consolidated net sales of $206 million in the first\nquarter of 2008 increased 19 percent compared with the first quarter of 2007,\nprimarily due to increased fine paper volumes following the acquisition of Fox\nRiver in March 2007. Operating income of $17.9 million in the first quarter of\n2008 declined compared to income of $19.4 million in the first quarter of\n2007, principally due to increases in manufacturing input costs that offset\nbenefits of higher selling prices and operational efficiencies.\n\n\nFollowing a decision in February 2008 to commit to a plan to sell both\nthe company's Pictou pulp mill and its Nova Scotia timberland assets, results\nfor these operations have been reported as discontinued operations in all\nperiods. In the first quarter of 2008, the net loss from discontinued\noperations was $81.4 million, or $5.46 per diluted common share, principally\ndue to after-tax charges of $80.3 million, or $5.38 per diluted common share,\nfor impairment of Pictou pulp mill assets and recognition of the estimated\nloss on disposal of the mill. Net income from discontinued operations of $4.6\nmillion, or $0.31 per diluted common share, was reported in the first quarter\nof 2007.\n\n\nFine Paper first quarter 2008 net sales of $97.0 million increased 34\npercent, from $72.3 million in 2007, primarily due to higher volumes from the\nacquisition of Fox River. Operating income was $10.0 million in the first\nquarter of 2008 and $12.4 million in the first quarter of 2007. The first\nquarter 2008 included almost $1 million of incremental costs related to the\nFox River integration. In addition, increased costs for fiber and energy and a\nless favorable sales mix in the first quarter of 2008 offset the benefit of\nhigher volumes, increased selling prices and improved operational efficiencies\nresulting from the Fox River acquisition.\n\n\nTechnical Products net sales were $108.6 million in the first quarter of\n2008, an eight percent increase compared to the first quarter of 2007. The\nincrease in...

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