Jan 25, 2007. /Lesprom Network/. Schweitzer-Mauduit International, Inc. reported on January 25 a fourth quarter 2006 net loss of $4.4 million, which included $4.8 million in pre-tax restructuring expenses, compared with net income of $2.8 million during the fourth quarter of 2005. The diluted loss per share was $0.28 compared with diluted earnings per share of $0.19 in the prior-year quarter. The fourth quarter 2006 restructuring expenses reduced earnings per share by $0.20. The diluted loss per share excluding restructuring expenses would have been $0.08 for the quarter. Wayne H. Deitrich, chairman of the board and chief executive officer, commented that, "Schweitzer-Mauduit's net loss for the fourth quarter of 2006 was primarily the result of two items. As planned, we chose to incur additional and costly machine downtime across all our French mills in order to return inventories to more normal levels. We accomplished the inventory reductions, but at a significant expense. Also, we realized additional restructuring expenses in our French and U.S. business units. Continued performance improvement in our U.S. operations partially mitigated these two negative factors.” "We remain encouraged about our business outlook despite finishing 2006 with disappointing, albeit expected, financial results. We are confident in our previously announced strategies for restructuring our French and U.S. businesses to better balance capacity to available demand. Sales growth is planned for cigarette paper used in lower ignition propensity cigarettes and for reconstituted tobacco leaf products. Additional progress is anticipated in cost reduction activities initiated across all our business units. The benefits from cost reduction activities are expected to further offset the continuing unfavorable impacts of lower production volumes and inflationary cost increases that have been experienced during the last two years." Full year results Net sales were $655.2 million for full-year 2006, 2% below the 2005 level. Operating profit for full-year 2006 totalled $5.3 million, a $34.0 million, or 87%, decrease from $39.3 million during 2005. Excluding $21.1 million in 2006 restructuring expenses, year-to-date operating profit declined by $12.9 million, or 33%. Schweitzer-Mauduit International, Inc. is a diversified producer of premium specialty papers and the world's largest supplier of fine papers to the tobacco industry. It also manufactures specialty papers for use in alkaline batteries, vacuum cleaner bags, overlay products, saturating base papers, business forms and printing and packaging applications. Schweitzer- Mauduit and its subsidiaries conduct business in over 90 countries and employ 3 500 people worldwide, with operations in the United States, France, Brazil, the Philippines, Indonesia and Canada.