Appvion Reports Fourth Quarter and Full-Year 2016 Results

Appvion’s 2016 operating income improved to $23.5 million from $10.5 million in 2015 as aggressive cost reductions combined with sales and volume growth and improved prices for its thermal products more than offset lower prices and shipment volume for its carbonless papers.

Appvion’s fourth quarter 2016 net sales of $167.1 million were $2.3 million lower than fourth quarter 2015. Thermal papers net sales were $101.1 million which was $5.3 million higher than fourth quarter 2015. Carbonless papers net sales of $66.0 million declined $7.6 million compared to fourth quarter 2015.

Current quarter shipments of thermal papers gained more than 4% in fourth quarter 2016 compared to fourth quarter 2015. Shipments of tag, label and entertainment papers (TLE) were nearly 8% higher than in fourth quarter 2015, while shipments of receipt paper were essentially flat in fourth quarter 2016 compared to the same period in 2015.

Carbonless papers shipment volume in fourth quarter 2016 was approximately 5% lower than fourth quarter 2015. Specialty papers continued its strong growth with a volume increase of nearly 10% compared to fourth quarter 2015. Sequentially, carbonless volume was flat in fourth quarter 2016 compared to third quarter 2016.

Appvion recorded fourth quarter 2016 operating income of $6.7 million compared to operating income of $3.5 million for fourth quarter 2015. Current quarter operating income was positively impacted by the continued improvements in manufacturing, lower selling, general and administrative (SG&A) expenses and a $4.4 million mark-to-market favorable variance associated with the Company’s retiree benefit plans compared to the same period last year. These favorable variances were partially offset by lower total volume, price, and product mix. In addition, the current quarter included $2.4 million in fees for advisory services supporting continuous profit improvement.

Appvion’s net sales for full-year 2016 were $690.4 million; $9.7 million lower than 2015. Thermal papers 2016 shipment volume was approximately 6% higher than for 2015 with TLE volume increasing nearly 11% while receipt paper volume declined less than 1%. Full-year shipment volume for carbonless papers declined approximately 10% compared to 2015. Despite overall volume decline for the segment, specialty papers volume grew more than 13% compared to last year.
more detail at:  http://www.prnewswire.com/news-releases/appvion-reports-fourth-quarter-and-full-year-2016-results-300422895.html

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