Neenah Paper’s consolidated net sales of $242.1 million in the 1Q 2017 were equal to 2016, as most growth in both Fine Paper and Packaging and Technical Products was offset by unfavorable currency effects and a decline in sales for Other products. On a constant currency basis, consolidated net sales increased 1%, as the company said in the press release received by Lesprom Network.
Operating income of $27 million in 2017 compared with $31.4 million in 2016. The lower income in 2017 was primarily due to $3.1 million of costs resulting from the U.S. filtration business start-up, approximately $2 million of higher costs for a week of downtime and other items in Germany, and other unfavorable impacts in Technical Products from input costs and currency. These items were partially offset by increased operating income in Fine Paper and Packaging as a result of reduced SG&A, lower manufacturing costs, and higher volumes and prices.
Consolidated operating income in 2016 included $1.1 million of costs for integration and restructuring. Excluding these items, last year's adjusted operating income was $32.5 million.
Income from continuing operations of $17.6 million decreased 8% compared with $19.2 million in the 1Q 2016 primarily as a result of the lower operating income in 2017, partly offset by benefits from a lower tax rate.
"Our businesses had a solid start to the year, especially knowing that Technical Products' earnings in the first half of the year would be impacted by start-up costs for our new U.S. filtration operations and short term headwinds from currency and rising input costs. The filtration facility qualification is progressing well and we continue to see enthusiastic support from our customers as we earn their approval on production from these new assets. Results in the quarter also included one-time costs for a downtime in our German filtration facility that was initiated to modify our operation and improve the safety and reliability of our saturation process," said John O'Donnell, CEO.
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.
