Nov 07, 2011. /Lesprom Network/. Appleton's 3Q 2011 net sales of $217.1 million increased 1.0% compared to 3Q 2010. 3Q 2011 operating income was $11.2 million compared to operating income of $13.1 million during 3Q 2010. 3Q 2011 operating income was reduced by $2.1 million of expense associated with a biennial maintenance shutdown at the West Carrollton, Ohio paper mill, as the company said in a press release received by Lesprom Network. Appleton's net sales for the first nine months of 2011 were $651.7 million; an increase of 0.9% compared to the first nine months of 2010. Year-to-date, 2011 operating income increased to $32.2 million compared to operating income of $28.3 million for the same period last year. Operating income for the first nine months of 2011 includes $2.1 million of expense associated with the biennial shutdown at West Carrollton and a $3.1 million charge for a litigation settlement while operating income for the first nine months of 2010 included an environmental expense insurance recovery of $8.2 million. Excluding these items, year-over-year operating income is up $17.3 million. Despite volume shortfalls in the paper business and higher prices for raw materials, Appleton achieved improved results due to better product pricing and mix as well as cost reduction efforts. Mark Richards, Appleton's chairman, president and CEO, said the Company had a solid 3Q. "In spite of raw material inflation, we delivered double digit EBITDA margins for the fifth consecutive quarter, which was consistent with our expectations, Richards said. Richards said he is especially encouraged by the performance of the thermal paper business which grew sales over 9% and operating income more than doubled compared to 3Q 2010”. Appleton produces carbonless papers, thermal papers and Encapsys products. Appleton, headquartered in Appleton, Wisconsin, has manufacturing operations in Wisconsin, Ohio and Pennsylvania, USA.