Oct 24, 2011. /Lesprom Network/. Wausau Paper reported 3Q net earnings of $5.2 million, compared with net earnings of $13.2 million in the prior year. Net sales decreased 3% to $266 million, as shipments decreased 5% to 160,000 tons, due primarily to planned volume reductions in the Paper segment’s print & color market category, as the company said in a press release received by Lesprom Network. Commenting on 3Q results, Thomas J. Howatt, president and CEO, said, “Consistent with our earlier expectations, 3Q earnings improved from 2Q levels as pricing actions and improved product mix offset record-high fiber costs and continuing demand weakness. While market conditions cause us to be cautious in our near-term earnings outlook, our focus remains on strategic execution and long-term shareholder value creation,” Mr. Howatt continued. “To that end, our Board of Directors approved the conditional sale of our remaining timberland assets and reaffirmed the Company’s initiatives to evaluate strategic alternatives for the print & color portion of our Paper business unit. These initiatives are entirely consistent with our approach to support investment in our highly successful Tissue business and narrow our Paper unit focus to growth-oriented technical markets.” The Company expects that full realization of mid-year pricing actions and modest reduction in wastepaper costs will increase operating margins in its Tissue business over the next quarter. Meanwhile, growing order weakness, impacted by a deteriorating economic environment, and a major maintenance outage at its Mosinee, Wisconsin, paper mill, are expected to result in reduced Paper unit profitability. As a result, 4Q earnings are expected in the range of $0.03 - $0.05 per diluted share, excluding timberland sales gains and capital-related expense. Adjusted 4Q earnings were $0.14 per diluted share last year. The Tissue segment’s 3Q operating profit of $7 million declined from $8.7 million in the 2Q and $13.5 million last year. Second- and third-quarter results included pre-tax expenses related to Tissue’s expansion project of $0.4 million and $0.7 million, respectively. Net sales decreased 4% while shipments declined 3%, reflecting reduced volume in the segment’s standard product category. The Paper segment’s 3Q operating profit of $5.6 million increased from $2.4 million in the 2Q and declined from $9.6 million the year before. Prior-year results included a pre-tax gain of $1.3 million from the alternative fuels mixture tax credit. Fiber and energy costs increased $4.7 million year-over-year as net sales and shipments decreased 3% and 6% respectively, primarily due to the reduced operating schedule at the segment’s Brokaw mill and demand weakness in the economically sensitive coated and liner product category. 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.