Feb 08, 2013. /Lesprom Network/. SWM reported 4Q 2012 earnings results for the period ended December 31, 2012. Net sales were $196.8 million in the three-month period ended December 31, 2012, versus $214.1 million in the prior-year quarter. Excluding the unfavorable impact of foreign currency exchange rate changes ($5.7 million) and receipt of initial fees ($12.6 million) under a new royalty agreement signed during the 4Q 2011, revenue would have slightly exceeded the prior-year period, as the company said in a press release received by Lesprom Network. Net sales for total year 2012 were $788.1 million compared to $801.0 million in 2011. Adjusted for the unfavorable impact of foreign currency exchange rate changes ($55.8 million), revenue increased by 5.4% driven by improved product mix. Net income was $16.5 million and $79.8 million for the 4Q and total year of 2012, respectively, a decrease of $31.1 million and $12.8 million, respectively, from the equivalent prior-year periods. Cash provided by operations was $171.6 million during 2012, compared with $81.5 million in the prior year. The higher cash generation during 2012 was largely due to increased profitability net of non-cash impairment charges and deferred income taxes, and a favorable net change in working capital. Net debt at December 31, 2012 was $4.8 million, a decrease of $64.7 million compared with net debt of $69.5 million at December 31, 2011. The decrease in net debt is largely the result of cash generated by operations less the share repurchase program ($50 million) and other cash usages including capital expenditures and dividends. Capital spending was $27.2 million in 2012 versus $60.9 million during 2011. The 2011 capital spending included $30.8 million toward construction of the RTL facility in the Philippines to a mothball state and $9.2 million toward completion of the LIP printing facility in Poland. Capital spending is projected to be approximately $30 million to $35 million in 2013. "Our performance in 2012 demonstrates SWM's continued progressive momentum. 2012 was a record year for operating profits and cash flow at SWM, reflective of the success with our value adding solutions for our customers as well as continued focus on manufacturing productivity in a competitive market environment," noted Frédéric Villoutreix, Chairman of the Board and CEO. SWM is a leading provider of highly-engineered and proprietary solutions primarily for the tobacco industry. It also manufactures specialty papers for other applications.