Jul 26, 2011. /Lesprom Network/. Wausau Paper reported 2Q net earnings of $3.2 million, compared with net earnings of $5.6 million in the prior year. Net sales increased 1% to $267.1 million, as shipments decreased 3% to 162,000 tons, due primarily to volume reductions associated with a reduced operating schedule at the Paper segment’s mill in Brokaw, Wisconsin, as the company said in a press release received by Lesprom Network. Commenting on 2Q results, Thomas J. Howatt, President and CEO, stated, “Earnings improved from 1Q and prior-year levels despite elevated input costs, demand variability and persistently weak economic conditions. Increased shipments in targeted technical markets drove product mix gains and enabled our Paper unit to achieve a third consecutive quarter of year-over-year profit improvement. At the same time, Tissue segment profits recovered from the 1Q as shipments rebounded to seasonally normal levels.” Looking to the 3Q, Mr. Howatt commented, “Commercialization of tape products from the rebuilt Brainerd machine is well underway and we expect volumes to ramp up over the next several quarters. Customer response to our announced Tissue capacity expansion has been highly encouraging and we are working to accelerate growth ahead of the planned January 2013 tissue machine start-up. These projects support growth in our target markets and are expected to substantially improve long-term shareholder returns.” The company expects that the initial benefits of recent selling price increases will only partially offset record-high wastepaper costs and continuing demand weakness in printing & writing markets over the next quarter. As a result, adjusted 3Q earnings are expected in the range of $0.11 - $0.14 per share as compared with $0.20 per share last year. The Tissue segment's 2Q operating profit of $8.7 million improved from $6.3 million in the 1Q and compared with $10.5 million last year. First- and second-quarter results included pre-tax expenses related to the Tissue expansion project of $0.2 million and $0.4 million, respectively. The Paper segment reported a 2Q operating profit of $2.4 million compared with $1.4 million last year. Current-year results include pre-tax expenses of $0.7 million associated with completion of tape trials on the rebuilt Brainerd machine. Shipments declined 5% due largely to a reduced operating schedule implemented earlier in the year at the Brokaw mill while net sales increased 1%, reflecting the benefit of increased selling prices and product mix improvement. With commercialization of tape and industrial grades well underway on the rebuilt machine, the Paper segment intends to further improve product mix and profitability by shifting Brainerd production from printing & writing to technical products over the next 18-24 months. 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.