Apr 26, 2011. /Lesprom Network/. Wausau Paper reported a 1Q net loss of $1.4 million, compared with net earnings of $2.9 million in the prior year. Net sales declined 3% to $249 million, as shipments decreased 10% to 152,000 tons, due primarily to anticipated volume reductions associated with a paper machine rebuild and reduced operating schedule at one of Paper segment’s mills, as the company said in a press release received by Lesprom Network. Commenting on 1Q results and the company’s growth initiatives, Thomas J. Howatt, President and CEO said, “1Q earnings reflect the impact of early-quarter winter storms on away-from-home demand in particular, and by rising input costs which have accelerated more rapidly than anticipated. A strong late-quarter rebound in Tissue segment order activity provided an encouraging conclusion to the quarter while the on-time and within budget rebuild of our Brainerd machine positions our Paper segment as a low-cost producer in the growing global tape market.” Looking to the 2Q, Mr. Howatt said, “We are focused on commercializing tape products on our rebuilt Brainerd machine in an expedited manner and look to accelerate growth in our Tissue segment as we begin our capacity expansion at Harrodsburg, Kentucky. We believe both of these investments represent a strong commitment to growth in strategic markets and increased long-term returns for our shareholders.” The Tissue segment's 1Q operating profit of $6.3 million included pre-tax expense of $0.2 million related to the recently-announced capacity expansion and compared with prior-year record 1Q operating profit of $11.1 million. Net sales and shipments declined 4% as weather-related weakness adversely affected volume in our larger end-use market categories early in the quarter. Order patterns returned to historical trend late in the quarter with March shipments reaching near-record levels. 2Q operating profits are expected to improve from 1Q levels as seasonal demand strengthens. Although announced pricing actions will have a minimal impact on the 2Q, implementation is expected to improve profitability through the balance of the year. The Paper segment reported a 1Q operating loss of $1.4 million compared with a prior-year operating profit of $2 million. Current-year results include pre-tax expenses of $3.3 million associated with the Brainerd paper machine rebuild and $0.6 million related to the transition to a reduced operating schedule at the Brokaw mill from seven days to five days per week. Excluding these items, 1Q operating profit increased to $2.6 million from $2 million last year despite absorbing $5 million of year-over-year fiber cost increases. Shipments declined 12% due largely to the machine rebuild and schedule adjustment while net sales declined just 2%, reflecting the benefit of increased selling prices and product mix improvement. Wausau Paper produces and markets specialty papers for industrial, commercial and consumer end markets as well as a complete line of away-from-home towel and tissue products.