Appvion reported 2Q 2013 operating income of $20.4 million compared to an operating loss of $30.6 million during 2Q 2012. 2Q 2012 results included $42.9 million of expense related to ceasing papermaking operations at the West Carrollton, Ohio, facility and transitioning to Domtar base paper. In addition, 2Q 2012 spending included $6.5 million of costs associated with the business combination transaction that was discontinued.
Appvion's net sales for the first six months of 2013 were $412.3 million compared to net sales of $433.5 million during the first half of 2012. Appvion reported operating income of $38.3 million for the first six months of 2013 compared to an operating loss of $80.5 million for the same period last year. Excluding one-time items, current year adjusted operating income of $40.7 million was $9.2 million higher than adjusted operating income reported for the first half of 2012. Prior year results included $105.1 million associated with ceasing papermaking operations and the base paper transition. In addition, first half 2012 results included $6.9 million of transaction costs discussed above.
Mark Richards, Appvion's chairman, president and CEO, said the Company improved adjusted operating income by nearly 9% in 2Q and approximately 29% in first half 2013, respectively, compared to the same periods in 2012, despite soft economic conditions and the Company's less than optimal manufacturing performance.
"We overcame market and operational challenges to deliver improvements to adjusted operating income as we have in each of the past five quarters," said Richards.
Appvion produces thermal, carbonless and security papers and Encapsys products. Appvion, headquartered in Appleton, Wisconsin, has manufacturing operations in Wisconsin, Ohio and Pennsylvania.