Aug 09, 2012. /Lesprom Network/. SWM reported 2Q 2012 earnings results for the period ended June 30, 2012. Operating profit, excluding restructuring and impairment expense, was $40.8 million in 2Q. Also excluding $7.1 million of unfavorable currency impact, Adjusted Operating Profit would have been 48% higher than the prior-year quarter, as the company said in the press release received by Lesprom Network Net sales were $198.8 million in 2Q 2012. Excluding the unfavorable $24 million impact of quarter-over-quarter currency changes, adjusted net sales were $222.8 million increased 8% over the prior-year quarter 2Q net income was $21 million. Sales volumes of Lower Ignition Propensity cigarette paper increased by 16% versus the prior-year quarter and were 29% higher in the first half of 2012 versus the first half of 2011. Reconstituted Tobacco volumes increased 5% in the first half of 2012 over the first half of 2011. Paper segment volumes, which includes LIP, decreased 9% versus the prior-year quarter due to declines in western world tobacco consumption, timing of customer orders and elimination of unprofitable business in selected areas. Frédéric Villoutreix, Chairman of the Board and CEO, commented: "2Q results, except for the continued weakening of the euro, were within our expectations. We saw ongoing growth in LIP sales, and we continue to expect EU LIP volumes to increase strongly during the second half of 2012 in line with our original projections for full year customer commitments. We also continue to expect full year 2012 RTL volumes to increase moderately over the prior year. Temporary machine shutdowns were implemented as required during the quarter to address lower Paper segment volumes, and actions to address on-going imbalances of demand and supply remain under consideration." "From an operational perspective, we remain on track to achieve our total year earnings commitment; however, the weaker euro has caused us to reduce our full year 2012 guidance, now expected to be $7.05 adjusted diluted earnings per share (a non-GAAP metric)," continued Mr. Villoutreix. "This is before adding in the expected approximate $0.22 favorable impact of 2012 share repurchases. However, if July 2012 exchange rate levels persist during the second half of 2012, we foresee a currency headwind of approximately $0.12 to $0.15 per share on our current guidance." "Our underlying business remains strong and, on a currency-neutral basis, our total year 2012 Adjusted Net Income from Continuing Operations projection will have increased by approximately 22% versus 2011. This continues the significant growth in earnings we have achieved each year since 2009." SWM is a diversified producer of premium specialty papers for the tobacco industry. It also manufactures specialty papers for other applications.