Appleton fourth quarter loss narrows slightly
Feb. 21, 2007 - Appleton's net sales for the fourth quarter ended December 30, 2006, increased 3.0 percent to $277.2 million compared to net sales of $269.0 million for the same quarter of 2005. Appleton's net sales for fiscal 2006 were $1.087 billion compared to $1.047 billion for fiscal 2005, a 3.8 percent increase.
Appleton reported a net loss of $0.5 million for fourth quarter 2006 compared to a net loss of $0.7 million for the same quarter of 2005.
The Company reported net income of $11.3 million for fiscal 2006 compared to a net loss of $3.0 million in fiscal 2005. The increase in net income was driven by higher sales and a $7.0 million decrease in restructuring costs compared to last year.
Technical papers net sales for the fourth quarter of 2006 increased 4.1 percent to $208.6 million compared to net sales of $200.4 million for the same period of fiscal 2005. During fiscal 2006, technical papers net sales increased 3.2 percent to $861.8 million, compared to $834.8 million of net sales in fiscal 2005.
Coated solutions net sales for fourth quarter 2006 increased 0.9 percent compared to the fourth quarter 2005. Net sales for carbonless paper, which accounts for the majority of the Company's coated solutions segment, increased 1.5 percent compared to the same quarter in fiscal 2005. For fiscal 2006, coated solutions net sales were 3.1 percent lower than net sales in fiscal 2005.
Thermal papers net sales increased 9.1 percent during fourth quarter 2006 compared to fourth quarter 2005. Much of this sales increase was gained in the Canadian and overseas markets where sales volumes increased 43.6 percent compared to fourth quarter of 2005. For fiscal 2006, increased sales volumes of 19.6 percent resulted in increased thermal net sales of 18.6 percent compared to fiscal 2005.
Security papers net sales rose 23.8 percent during fourth quarter 2006, compared to the same quarter of fiscal 2005, due to continued solid sales growth in many of its product offerings. For fiscal 2006, security papers experienced increased net sales of 18.1 percent compared to fiscal 2005.
Operating income for technical papers in fiscal 2006 increased by 12.6 percent, to $65.9 million, compared to fiscal 2005 operating income of $58.5 million. Coated solutions fiscal 2006 operating income of $50.9 million decreased $3.9 million or 7.1 percent compared to fiscal 2005. During fiscal 2006, thermal papers operating income nearly tripled to $13.4 million. Security papers fiscal 2006 operating income rose to $1.6 million compared to a fiscal 2005 loss of $0.8 million.
Secure and Specialized Print Services
Net sales for fourth quarter 2006 increased 1.5 percent over fourth quarter 2005. In comparison to fiscal 2005, fiscal 2006 net sales were $1.5 million or 1.3 percent higher. This increase is primarily attributable to an increase in sales of secure mail services, phone cards, bar-coded labels and security papers, which offset a reduction in calendar and diary sales. Comparing fiscal 2006 to fiscal 2005, operating income was $0.2 million lower.
Fourth quarter net sales for Appleton's performance packaging companies were 1.8 percent lower in the fourth quarter of 2006 compared to fourth quarter 2005. Performance packaging net sales for fiscal 2006 were $12.3 million or 12.4 percent higher than fiscal 2005 net sales. Fiscal 2006 operating income grew by 65.0 percent, to $9.8 million, as compared to fiscal 2005 due to continued sales growth and improved expense control.