Adjusted earnings excluded costs of $0.01 per share in 2013 to integrate brands purchased from Southworth in January 2013 and excluded costs of $0.23 per share in 2012 for acquisition costs and a pension settlement charge. Adjusted earnings are reconciled to comparable GAAP figures later in this release.
Adjusted earnings per share of $0.74 in the 1Q 2013 included the impact of $0.07 per share from a higher effective tax rate in 2013. Adjusted operating income of $22.3 million was slightly above prior year with increases in Fine Paper offsetting lower income in Technical Products. The impact of the higher effective tax rate more than offset benefits of higher operating income and lower interest expense in 2013.
Net sales of $213.2 million in the 1Q 2013 increased 8% compared with the 1Q 2012. Revenues increased in both segments, with growth in Fine Paper aided by additional volumes from acquired brands.
"As we started the year, we are seeing benefits from optimizing our expanded Fine Paper business and in Technical Products, while we knew it would be a challenge surpassing last year’s record earnings given the challenging conditions in Europe, we were able to grow our top line with higher volumes and an improved mix,” said John O’Donnell, CEO.
“We are executing against our strategies, and given our competitive market positioning, solid balance sheet and cash flow generation abilities, we are well-positioned to take advantage of opportunities that can increase returns to our shareholders.”
Neenah 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.