Neenah Paper’s consolidated net sales increased 16% to $246 million compared with $211.3 million in the second quarter of 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.

“Quarterly comparisons accelerated in both segments in the second quarter with improved organic volume growth, continued positive impacts from the August 2015 FiberMark acquisition and lower input costs,” says John O’Donnell, chief executive officer. “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.” 

Technical Products net sales of $126.5 million increased 19% compared with $106.2 million in the prior year. The increase in revenues resulted from acquired sales and from organic volume growth led by transportation filtration and tape. These higher volumes and a small currency translation benefit were only partly offset by mix and modest reductions in prices for grades with contractual adjusters.