Oct 28, 2010. /Lesprom Network/. Wausau Paper reported 3Q net earnings of $13.2 million, compared with net earnings of $14.6 million in the prior year. Net sales of $274 million were even with last year, as shipments declined 9% to 169,000 tons due to a paper mill closure and targeted inventory reduction efforts in the prior year. Excluding special items, adjusted quarterly earnings were $0.20 per share compared to $0.23 per share last year, company said in a statement received by Lesprom Network. The Tissue segment posted 3Q operating profit of $13.5 million compared with record profit of $15.9 million last year, primarily reflecting higher fiber costs. Net sales decreased 1% and shipments declined 4% as away-from-home market demand declined an estimated 2%. The Paper segment’s 3Q operating profit of $9.6 million included a pre-tax gain of $1.3 million related to the 2009 alternative fuel mixtures tax credit. Prior-year operating profit of $15.5 million included pre-tax charges of $1.1 million related to facility closures, pre-tax gains of $4.0 million from the alternative fuel mixtures tax credit, and pre-tax gains of $2.7 million associated with the sale of a yeast manufacturing business. Excluding these items, adjusted third-quarter operating profit was $8.3 million compared to $9.9 million last year. Net sales increased 1% while shipments declined 11%, reflecting a paper mill closure and inventory reduction efforts in the prior year. The company sold 4,400 acres of timberlands in the 3Q for an after-tax gain of $2.6 million. Approximately 8,000 acres of non-strategic timberlands remain in the sales program. The company will continue to own and manage 77,000 acres of strategic timberland at the completion of the sales program. Commenting on 3Q results and the 4Q dividend, Thomas J. Howatt, President and CEO, said, “Earnings increased to their highest level of the year and surpassed our earlier expectations due to a particularly strong sales mix and full realization of recent selling price increases. With inconsistent market demand and year-over-year fiber costs increasing $21 million, we continued to manage costs closely while achieving growth in value-added tissue and select paper categories. Mr. Howatt continued, “The reinstatement of a regular quarterly dividend reflects the earnings and balance sheet improvements achieved since suspending the dividend in early 2009. We appreciate the support and patience of shareholders as we repositioned the business for profitable growth and met the challenges posed by a difficult economy.” Looking to the 4Q, Mr. Howatt remarked, “While input cost volatility and sluggish demand have resulted in a degree of earnings variability over the last several quarters, we remain focused on long-term growth in core markets to drive profitability and enhance shareholder value. Customer order patterns have slowed early in the fourth quarter, reflecting both seasonal weakness and a decelerating economy, while fiber prices remain at elevated levels. In addition, equipment repairs completed early in the 4Q at Tissue’s Middletown mill are expected to impact earnings by approximately $0.02 per share. As a result, we expect 4Q earnings in the range of $0.06 - $0.09 per share, excluding timberland sales gains.” 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.