Schweitzer-Mauduit International, Inc. ("SWM") reported earnings results for the three-month period ended September 30, 2016 and announced a 5% increase of its per share quarterly cash dividend rate to $0.42 from $0.40.
3Q 2016 net sales were $209.3 million, up 13.5%.
GAAP operating profit was $30.8 million, down $1 million, and GAAP operating profit margin was 14.7%, down 250 basis points. Adjusted operating profit was $35.1 million, up $0.9 million, and adjusted operating profit margin was 16.8%, down 170 basis points.
GAAP income was $18.7 million, down $6.9 million; this equated to GAAP EPS of $0.61, down $0.23. Adjusted income was $22.8 million, down $4.4 million; this equated to adjusted EPS of $0.74, down $0.15.
Frederic Villoutreix, Chairman of the Board and CEO, commented, "3Q results were in line with our expectations, and we are pleased to enter the 4Q generally on track to achieve the annual guidance we issued at the outset of the year. Year-to-date, Engineered Papers has performed better than expected, Argotec has slightly exceeded the projected EPS accretion, and the negative currency comparisons we anticipated have been less impactful than we expected."
Year-to-date net sales were $641.2 million, up 15.7%.
GAAP operating profit was $99.9 million up $21.6 million, and GAAP operating profit margin was 15.6%, up 150 basis points. Adjusted operating profit was $113.1 million, up $20.7 million, and adjusted operating profit margin was 17.6%, up 90 basis points.
GAAP income was $65.8 million, down $3.1 million; this equated to GAAP EPS of $2.15, down $0.10. Adjusted income was $75.3 million, down $4.1 million; this equated to adjusted EPS of $2.46, down $0.14.
SWM is a leading global provider of highly engineered solutions and advanced materials for a variety of industries. Historically, SWM primarily served the tobacco industry, which remains a key focus. SWM also manufactures specialty papers.
