Appvion’s 2Q 2016 net sales of $173.6 million were $7.4 million, or 4.5%, higher than 2Q 2015 net sales of $166.2 million largely due to higher shipment volumes and favorable product pricing. The ongoing strength of the U.S. Dollar against most major currencies had a slight negative impact on 2Q net sales.
Year-to-date net sales of $354.1 million exceeded prior year net sales of $350.1 million by $4 million, or approximately 1%, due to improved volume in the thermal segment that more than offset volume declines in the carbonless segment.
During 2Q 2016, the Company recorded operating income of $3.9 million, which was $5.3 million higher when compared to an operating loss of $1.4 million for 2Q 2015.
The improved earnings in 2Q 2016 were due to significantly improved performance in the thermal segment. Improved price in both thermal and carbonless as well as an improved product mix contributed $6.3 million to 2Q operating earnings.
Appvion recorded $13.5 million of operating income for first half 2016, which was an increase of $10.6 million compared to operating income of $2.9 million the Company recorded for the same period in 2015.
The increase in operating earnings was due to improved manufacturing operations of $9.5 million, $7.1 million of improved price and product mix, and $3.7 million of lower SG&A and other costs. These improvements more than offset the $7 million decrease in earnings due to lower carbonless shipment volumes and the $2.7 million negative impact of foreign exchange rates.
Appvion produces thermal, carbonless, security, inkjet, digital specialty and colored papers.
