05.11.15
Neenah Paper, Inc., reported consolidated net sales of $228.2 million in the first quarter of 2015, which was up 1% compared to the first quarter of 2014. Growth resulted from volume gains in Technical Products, including the July 2014 filtration acquisition, improved selling prices and a higher value mix in both business segments. These items more than offset the impact of currency translation, which reduced sales by $14 million, or 7%, due to a stronger U.S. dollar versus the euro.
“Our businesses had a strong start to the year led by volume-driven growth in filtration and other technical products markets as well as margin recovery in Fine Paper and Packaging following last year’s spike in winter energy costs. While the strong U.S. dollar materially impacted our top line, effective cost control and lower input costs helped our teams completely mitigate currency impacts on the bottom line,” says John O’Donnell, CEO.
In the company’s Technical Products segment, net sales of $119.9 million increased 2% compared with prior year sales of $117.5 million. The growth in sales resulted from increased volumes (including the acquisition), a higher value product mix and increased selling prices, partly offset by unfavorable currency effects. Sales on a constant currency basis grew 14% (4% excluding the acquisition), led by gains in filtration.
Operating income of $16 million in the first quarter of 2015 increased 17% compared with prior year income of $13.7 million, the latter which included $0.3 million for restructuring costs. Higher operating income in 2015 resulted from sales growth, improved net selling prices and lower input costs. These items were only partly offset by higher SG&A and currency impacts.
“Our businesses had a strong start to the year led by volume-driven growth in filtration and other technical products markets as well as margin recovery in Fine Paper and Packaging following last year’s spike in winter energy costs. While the strong U.S. dollar materially impacted our top line, effective cost control and lower input costs helped our teams completely mitigate currency impacts on the bottom line,” says John O’Donnell, CEO.
In the company’s Technical Products segment, net sales of $119.9 million increased 2% compared with prior year sales of $117.5 million. The growth in sales resulted from increased volumes (including the acquisition), a higher value product mix and increased selling prices, partly offset by unfavorable currency effects. Sales on a constant currency basis grew 14% (4% excluding the acquisition), led by gains in filtration.
Operating income of $16 million in the first quarter of 2015 increased 17% compared with prior year income of $13.7 million, the latter which included $0.3 million for restructuring costs. Higher operating income in 2015 resulted from sales growth, improved net selling prices and lower input costs. These items were only partly offset by higher SG&A and currency impacts.