May 09, 2012. /Lesprom Network/. Neenah Paper, Inc. reported adjusted earnings from continuing operations of $0.77 per diluted common share in the 1Q 2012 compared to adjusted earnings of $0.54 per share in the 1Q 2011. Excluding adjustments, earnings in the 1Q 2012 of $0.54 per share compared to earnings of $0.45 per share in the prior year period, as the company said in a press release received by Lesprom Network. Net sales of $198.2 million in the 1Q 2012 grew 15% compared with the 1Q 2011, while adjusted operating income of $22.2 million increased 29%. Operating income increased in both Technical Products and Fine Paper as a result of higher net pricing and cost efficiencies, with Fine Paper further benefitting from higher volumes related to the purchased brands. "Each of our businesses performed well during the 1Q, with combined operating income for the two segments achieving a new quarterly record. We are improving topline performance with volume gains and price realization in higher value products and are realizing manufacturing cost efficiencies that have come from a consistent emphasis on improved operating throughput,” said John O’Donnell, CEO. “Both sales and integration of the recently acquired brands are ahead of expectations, and the transaction has generated the anticipated strong market support and internal efficiencies that we knew could be a game changer for some of our manufacturing facilities.” Technical Products segment's net sales were $106 million in the 1Q 2012, slightly ahead of $105.4 million in the 1Q 2011. After adjusting for unfavorable currency impacts resulting from a weaker Euro in 2012, revenue grew 3Q and reflected volume gains in filtration and label products that offset lower tape sales, as well as a higher value mix and increased selling prices for most products. Operating income for Technical Products of $12.5 million in the 1Q 2012 increased 19% compared with $10.5 million in the 1Q 2011. Higher income in 2012 resulted from improved manufacturing efficiencies, increased selling prices and growth in higher value products. Year on year input costs were relatively flat, as lower fiber costs were offset by increased prices for other materials. Fine Paper segment's net sales of $86.4 million in the 1Q 2012 increased 28% compared with prior year sales of $67.3 million. Higher sales in 2012 resulted from volume growth primarily due to acquired Wausau brands, but also from growth in core premium brands and double-digit sales gains in luxury packaging, labels and into international markets. Increased sales in 2012 also reflected net selling prices that were slightly higher than the prior year period. Operating income of $10.8 million in the 1Q 2012 compared to $10.5 million in 2011. Operating income in 2012 included $2.5 million of integration costs for the acquired brands. Excluding these costs, operating income increased 27% in 2012 as a result of growth in volume, higher average selling prices and lower manufacturing costs. Lower costs were due to improved efficiencies as well as lower pulp prices. Neenah Paper 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.