Appvion's 2016 operating income improved to $23.5 million from $10.5 million in 2015 as aggressive cost reductions combined with sales and volume growth and improved prices for its thermal products more than offset lower prices and shipment volume for its carbonless papers.
Appvion's 4Q 2016 net sales of $167.1 million were $2.3 million lower than 4Q 2015. Appvion recorded 4Q 2016 operating income of $6.7 million compared to operating income of $3.5 million for 4Q 2015. Current quarter operating income was positively impacted by the continued improvements in manufacturing, lower selling, general and administrative (SG&A) expenses and a $4.4 million mark-to-market favorable variance associated with the Company's retiree benefit plans compared to the same period last year. These favorable variances were partially offset by lower total volume, price, and product mix. In addition, the current quarter included $2.4 million in fees for advisory services supporting continuous profit improvement.
Appvion's net sales for full-year 2016 were $690.4 million; $9.7 million lower than 2015. The Company reported operating income of $23.5 million for 2016 compared to operating income of $10.5 million for all of 2015.
Appvion produces thermal, carbonless, security, inkjet, digital specialty and colored papers.
