Neenah Paper's 2Q 2016 consolidated net sales increased 16% to $246 million compared with $211.3 million in the 2Q 2015. Revenues increased as a result of acquired sales in all segments and organic volume growth in Technical Products, partly offset by lower average prices in both segments primarily due to a product mix which lowered revenue but had minimal bottom line impact.
Operating income of $33.9 million in 2016 increased 22% compared with $27.7 million in 2015. Higher income in 2016 resulted primarily from revenue growth, lower input costs, synergies and other cost efficiencies that more than offset increased SG&A and lower selling prices. Excluding $1.4 million of costs in 2016 for integration and restructuring, adjusted operating income of $35.3 million increased 27% compared with the prior year.
Income from continuing operations of $20.7 million increased 26% compared with $16.4 million in the 2Q 2015 primarily as a result of higher operating income.
During the 2Q 2016, a net loss of $0.4 million was recognized in Discontinued Operations for settlement of final closing items following the sale of the Lahnstein mill on October 31, 2015.
"Quarterly comparisons accelerated in both segments in the 2Q with improved organic volume growth, continued positive impacts from the August 2015 FiberMark acquisition and lower input costs," said John O'Donnell, CEO. "Key strategic initiatives remain on track, with a project to add filtration capacity in the U.S., growth in our premium packaging business, and the synergies anticipated as we execute the integration plans with FiberMark. Our substantial operational cash flow provides us the flexibility to execute these initiatives while maintaining a strong balance sheet and a meaningful return of cash to shareholders."
Neenah is a leading global specialty materials company, focused on premium niche markets that value performance and image. Key products and markets include advanced filtration media, specialized performance substrates used for tapes, labels and other products, and premium printing and packaging papers.