Nov 05, 2012. /Lesprom Network/. Appleton's 3Q 2012 net sales of $210.7 million decreased 2.9% compared to 3Q 2011. Adjusting for the Company's decision to discontinue the sale of carbonless papers into certain non-strategic international markets, 3Q 2012 net sales were up 1.8%. Appleton's strong revenue growth from thermal papers of 9.3% helped to partially offset the sales decreases in carbonless papers and Encapsys, as the company said in the press release received by Lesprom Network. Appleton reported a 3Q 2012 operating income of $11.9 million compared to operating income of $11.2 million during 3Q 2011. Excluding certain items, 3Q 2012 adjusted operating income was $22.1 million, $10.9 million higher than adjusted operating income reported for 3Q 2011. Operating income for 3Q was reduced by a $7 million settlement charge relating to the withdrawal from the multi-employer pension plan as negotiated by Appleton participants during recently-concluded labor contract negotiations. The Company also recorded $5.1 million of costs related to ceasing papermaking operations at the West Carrollton, Ohio mill and transitioning to base paper produced by Domtar. Also during the quarter, a $2.2 million environmental expense insurance recovery was recorded. Appleton's net sales for the first nine months of 2012 were $644.3 million, 1.1% lower than the first nine months 2011. Adjusting for the Company's decision to discontinue the sale of carbonless papers into certain non-strategic international markets, sales for this period were up 1.6%. Appleton reported an operating loss of $70.3 million for the first nine months of 2012 compared to operating income of $32.2 million for the same period last year. Excluding certain items, current year adjusted operating income was $51.9 million, $16.6 million higher than adjusted operating income reported for the same period 2011. On a year-to-date basis, costs related to ceasing papermaking operations at West Carrollton and transitioning to Domtar base paper were $110.2 million. Current year results also included $7.2 million of business combination transaction costs, the $7 million multi-employer pension plan settlement charge and the $2.2 million environmental expense insurance recovery. First nine months 2011 operating income included a $3.1 million charge for a litigation settlement. Mark Richards, Appleton's chairman, president and CEO, said “Strong sales and earnings growth from the thermal papers segment, combined with the savings delivered by the strategic supply agreement with Domtar, helped Appleton to improve adjusted operating income by nearly $11 million during 3Q 2012 and more than $16 million for the first nine months of 2012, compared to the same periods in 2011.” Richards said the Company's 3Q performance built on the momentum of the 2Q solid results. "We continue to execute our plan by delivering strong and consistent product quality, service and value to our customers, improving operating performance, and implementing the base paper supply agreement with Domtar," Richards said. Appleton creates product solutions through its development and use of coating formulations, coating applications and Encapsys® microencapsulation technology. The Company produces thermal, carbonless and security papers and Encapsys products. Appleton, headquartered in Appleton, Wisconsin, has manufacturing operations in Wisconsin, Ohio and Pennsylvania.