Neenah has reported that revenues increased 9% o a record $271.3m compared with $248.7m in the prior year.
A loss per diluted common share (E.P.S.) of $0.29, which included $1.47 per share of adjusting items, compared with earnings of $1.46 per share in 2017.
The adjusting items in 2018 were comprised of non-cash costs for impairment related to the planned sale of the Brattleboro mill and associated facilities, a settlement charge related to withdrawing from a multi-employer pension plan, and integration and restructuring costs. The Brattleboro sale is part of a broader effort to increase efficiencies in the Fine Paper and Packaging business.
Adjusted E.P.S. in 2018 of $1.18 decreased 3 percent compared with $1.22 per share in 2017. Adjusted E.P.S. in 2018 excluded costs of $1.47 per share noted above, and in 2017 excluded a benefit of $0.24 per share related to prior period tax adjustments.
Cash generated from operations of $31.7 million increased 35 percent from $23.4 million in the second quarter of 2017.
Quarterly cash dividends of $0.41 per share increased 11 percent compared with the prior year period.
Neenah CEO John O’Donnell said: “In the second quarter, our Technical Products segment continued to deliver very strong top and bottom line performance, and we made significant progress restoring the attractive margins of Fine Paper and Packaging. With each business focused on price realization, operating performance and working capital efficiencies, results were also evident in improved operating cash flows.
“We’re expanding organically in targeted markets like filtration, premium packaging and performance materials, and profitably increasing Neenah’s overall growth rate. As we head into the seasonally slower second half of the year with persistent input cost pressures, our competitive and financial positions remain strong and our teams are focused on additional actions that can deliver increased value for our shareholders.”
Consolidated net sales of $271.3 million in the second quarter of 2018 increased 9 percent compared with $248.7 million in the second quarter of 2017. Revenue gains resulted from higher Technical Products volumes (including volume from the November 2017 acquisition of Coldenhove), increased selling prices and a higher value mix in both segments, and favorable currency effects.
Selling, general and administrative (SG&A) expense of $25.2 million in the second quarter of 2018 increased from $24.5 million in the prior year as a result of acquired SG&A, partly offset by lower spending in Fine Paper and Packaging.
An operating loss of $4.3 million in the second quarter of 2018 compared to operating income of $29.2 million in 2017. The $33.5 million decrease in income was mainly due to adjustments of $33.3 million, consisting of the $32.0 million of impairment, $1.0 million of pension settlement costs and $0.3 million of integration and restructuring costs. Excluding these items, adjusted operating income of $29.0 million was in line with last year as higher input, distribution and manufacturing costs were mostly offset by volume growth, increased selling prices and currency.
Net interest expense of $3.3 million in the second quarter of 2018 increased from $3.0 million in the second quarter of 2017. The increased expense in 2018 was primarily due to incremental borrowings to finance the Coldenhove acquisition.
Source: Company Press Release