Aug 08, 2012. /Lesprom Network/. Neenah Paper, Inc. reported adjusted earnings from continuing operations of $0.85 per diluted common share in the 2Q 2012 compared with earnings of $0.49 per share in the 2Q 2011. Without adjustments of $0.08 per share ($1.9 million pre-tax) to exclude costs of integrating purchased fine paper brands, earnings on a GAAP basis in the 2Q 2012 were $0.77 per share. There were no adjusting items in the 2Q 2011, as the company said in the press release received by Lesprom Network. Net sales of $211.7 million in the 2Q 2012 grew 16% compared with the 2Q 2011. Adjusted operating income of $23.9 million increased 52% from $15.7 million in the prior year. Adjusted income of $13.9 million increased 78% compared to $7.8 million in the prior year. “Our businesses set an all-time quarterly record for sales and profits, with Technical Products and Fine Paper each delivering double-digit earnings growth. Our teams are executing well against key objectives of growing high value, performance-oriented Technical Products offerings and delivering the value promised from our expanded Fine Paper business,” said John O’Donnell, CEO. “In addition, both businesses are realizing cost benefits from more efficient manufacturing operations; and this, along with our strong market positions, will serve us well in what may be weaker global economic conditions in the second half of the year.” Technical Products segment's net sales were $106.9 million in the 2Q 2012, a decrease of 7% compared with the 2Q 2011. On a constant currency basis, revenue grew one percent and reflected volume gains in filtration, label and non-woven wall cover products that partially offset lower tape shipments. In addition, sales grew as a result of a higher value mix and increased selling prices for most products. Offsetting these factors was unfavorable currency impacts due to an 11% decline in the Euro. Operating income for Technical Products of $12.3 million in the 2Q 2012 increased 26% compared with $9.8 million in the 2Q 2011. Higher income in 2012 resulted from growth in higher value products, increased selling prices and improved manufacturing efficiencies that more than offset higher input costs and unfavorable currency translation effects. Fine Paper segment's net sales of $96.3 million in the 2Q 2012 increased 41% compared with prior year sales of $68.5 million. Higher sales in 2012 resulted from volume growth, primarily due to acquired Wausau brands, as well as from double-digit sales gains in luxury packaging, labels and international markets. Operating income of $13.3 million in the 2Q 2012 compared to $10 million in 2011. Operating income in 2012 included $1.9 million of integration costs for the acquired brands. Excluding these costs, operating income increased 52% in 2012 as a result of growth in volume and associated manufacturing cost efficiencies, as well as lower pulp prices. Year-to-date net sales of $409.9 million in 2012 increased 15% compared to sales of $355.6 million in 2011. Most of the growth resulted from a 35% gain in Fine Paper sales, primary reflecting acquired brands. Technical Products sales decreased three percent as a higher value mix and improved selling prices were more than offset by unfavorable currency effects and lower volumes. On a constant currency basis, year-to-date Technical Products sales were up two percent. Operating income of $38.2 million in 2012 increased from $30.5 million in 2011. Growth in operating income resulted from higher selling prices, manufacturing efficiencies and lower input costs in addition to Fine Paper volume growth and a more profitable Technical Products mix. Operating income in 2012 included costs of $7.9 million for integration of acquired fine paper brands and a pension settlement charge. Neenah Paper is a leader in premium image and performance-based products, including filtration, specialized substrates used for tapes, labels and other products, and high-end printing papers.