Revenues increased as a result of acquired sales in all segments and organic volume growth in Technical Products that more than offset modest unfavorable impacts from lower net selling prices and currency translation.
Operating income of $31.4 million in 1Q 2016 increased 11% compared with $28.4 million in 1Q 2015. Higher income in 2016 resulted primarily from revenue growth and lower input costs, including purchasing synergies and sourcing initiatives, that more than offset increased SG&A and other costs.
Excluding $1.1 million of costs in 2016 for integration and restructuring related activities, adjusted 2016 operating income of $32.5 million increased 14 percent compared with the prior year.
Income from continuing operations of $19 million increased 18% compared with $16.1 million in the 1Q 2015 as a result of higher operating income and a lower tax rate.
"We delivered considerable growth in profits and cash flows in the 1Q as our business teams continue to execute against value-adding initiatives, including the integration of FiberMark," said John O'Donnell, CEO. "While global market and economic conditions remain less than stellar, this environment has helped moderate input costs and we've further improved results through synergies and manufacturing efficiencies. Our cash continues to be deployed where we can generate attractive returns, and in the first quarter this included capital spending for added US filtration capacity and increased returns to shareholders through share buybacks and a higher dividend."
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.
