Neenah's consolidated net sales of $244 million in the 4Q 2017 grew 11% compared with $220.5 million in the prior yearю Adjusted operating income of $20.1 million in 2017 decreased 23% compared with $26 million in 2016, as the company said in the press release received by Lesprom Network.
Operating income of $19.1 million in 2017 decreased 13% compared with $21.9 million in the 4Q 2016. The lower income reflected higher costs for input and distribution, the U.S. filtration ramp up, a planned maintenance down in Germany (that occurred in the 3Q 2016), as well as acquisition and purchase accounting expenses related to Coldenhove. These items were only partly offset by benefits from higher volume and prices, and lower costs for restructuring, integration and pension settlement.
"Neenah's 4Q and full year reflected record sales, with top line growth across each of our businesses. While these record results did not translate to the bottom line due to expected losses with our U.S. filtration start-up and a sharp 4Q increases in input and transportation costs, our teams are focused on market and process activities to offset these impacts," said John O'Donnell, CEO. "Each business continues to unlock their unique growth catalysts as we evolve to a faster growing, specialty materials company. Fine Paper & Packaging continues their double digit premium packaging growth, while Technical Products benefits from our recent digital transfer products acquisition and the growing utilization of our world-class filtration asset. Finally, our strong balance sheet and substantial cash flow generation will continue to allow us to take advantage of future opportunities that can create value for our shareholders."
Consolidated net sales of $979.9 million in FY 2017 were 4%higher than the prior year. Consolidated operating income of $104.3 million in 2017 decreased 9% from the prior year.
Neenah is a leading global specialty materials company, focused on premium niche markets that value performance and image. Key products and markets include advanced filtration media, specialized performance substrates used for tapes, labels and other products, and premium printing and packaging papers.
