For the first quarter of 2016, Neenah Paper reported all-time record quarterly sales, operating income and adjusted earnings per share (E.P.S.), which included results from August 2015 acquisition of FiberMark.

Consolidated net sales increased 13% to $242.1 million compared with $214.4 million in the first quarter of 2015. Revenues increased as a result of acquired sales in all segments and organic volume growth in Technical Products that more than offset modest unfavorable impacts from lower net selling prices and currency translation.    

Selling, general and administrative (SG&A) expense of $26.4 million in the first quarter of 2016 increased from $20.8 million in the prior year. SG&A increased in 2016 primarily as a result of the addition of FiberMark, as well as timing of other expenses. 

Operating income of $31.4 million in 2016 increased 11% compared with $28.4 million in 2015. Higher income in 2016 resulted primarily from revenue growth and lower input costs, including purchasing synergies and sourcing initiatives that more than offset increased SG&A and other costs. Excluding $1.1 million of costs in 2016 for integration and restructuring related activities, adjusted 2016 operating income of $32.5 million increased 14% compared with the prior year.

Technical Products net sales of $121.5 million increased 15% compared with prior year sales of $106.1 million. The increase in revenues resulted from both acquired sales and organic volume growth, partly offset by lower net selling prices and currency effects. After excluding $0.3 million in 2016 for integration costs, adjusted operating income of $19.5 million in the first quarter of 2016 increased 25% compared with prior year income of $15.6 million. Higher 2016 operating income resulted from increased sales and lower input costs that more than offset higher SG&A (including SG&A from the acquisition) and currency impacts.