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Wausau Paper Announces Third-Quarter Earnings, Record Sales and Shipments.


MOSINEE, Wis adv. 1. Certainly; really; indeed.
v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis.
. -- Wausau Wausau (wô`sô), city (1990 pop. 37,060), seat of Marathon co., central Wis., on the Wisconsin River; settled 1839, inc. 1872. It is an industrial, commercial, and agricultural city in the heart of Wisconsin's dairy region.  Paper (NYSE NYSE

See: New York Stock Exchange
:WPP WPP Wire & Plastic Product PLC
WPP World Press Photo
WPP Web Presence Provider
WPP Wolf Pack Productions (anime fan subbing group)
WPP Witness Protection Program
WPP Wireless Packet Platform
WPP Work Package Planning
) today reported net earnings for the third quarter of $7.5 million or $0.15 per share, compared with a net loss of $9.0 million, or $0.18 per share, the year before. Net sales Net Sales

The amount a seller receives from the buyer after costs associated with the sale are deducted.

Notes:
This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight
 increased 7 percent to $306.7 million while shipments increased 2 percent to 234,000 tons, both records for any quarter.

Third-quarter results included an after-tax af·ter-tax also af·ter·tax
adj.
Relating to or being that which remains after payment, especially of income taxes: after-tax profits. 
 gain of $4.1 million, or $0.08 per share, from the sale of timberlands and stock incentive charges of $0.5 million, or $0.01 per share. Prior-year third-quarter results included after-tax charges of $13.6 million, or $0.26 per share, related to the closure of Printing & Writing's sulfite sulfite /sul·fite/ (sul´fit) any salt of sulfurous acid.

sul·fite
n.
A salt or ester of sulfurous acid.
 pulp mill A pulp mill is a manufacturing facility that converts wood chips or other plant fiber source into a thick fiber board which can be shipped to a paper mill for further processing.  in Brokaw, Wisconsin Brokaw is a village in Marathon County, Wisconsin, United States. It is part of the Wausau, WI Metropolitan Statistical Area. The population was 107 at the 2000 census. Geography
Brokaw is located at  (45.028457, -89.
; timberland sales gains of $0.7 million, or $0.01 per share; and stock incentive charges of $0.2 million.

"Our third-quarter performance represented our strongest quarterly earnings in two years," said Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM).

The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs
 J. Howatt, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Record revenues, strong timberland sales gains and continued progress with our strategic initiatives - attractive niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector.

By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers.
, product innovation, benchmark customer service and operational excellence - drove much of the improvement in profitability. Approximately 30 percent of revenues came from products developed in the last three years, exceeding our corporate goal of 25 percent, while paper mill productivity improved 2 percent."

For the first nine months, Wausau Paper reported net earnings of $9.8 million, or $0.19 per share, compared with a net loss of $9.7 million, or $0.19 per share, the year before. In addition to after-tax timberland sales gains of $0.12 per share, results for the current year included stock incentive charges of $0.03 per share. Year-ago nine-month results included sulfite pulp mill closure charges of $0.38 per share, timberland sales gains of $0.02 per share and stock incentive credits of $0.03 per share.

Printing & Writing reported third-quarter operating profits Operating profit (or loss)

Revenue from a firm's regular activities less costs and expenses and before income deductions.


operating profit

See operating income.
 of $1.2 million, versus losses of $23.3 million last year, which included pre-tax pre-tax adjanterior al impuesto

pre-tax adjavant impôt(s)

pre-tax adjal lordo d'imposta 
 pulp mill closure charges of $20.8 million. Net sales and shipments increased 9 percent and 4 percent, respectively. "The third quarter was Printing & Writing's most profitable quarter in two years and represents substantial improvement from first- and second-quarter operating losses operating loss

The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income.
 of $7.1 million and $3.1 million, respectively," Mr. Howatt said. "This sequential improvement reflected selling price increases, product mix gains and operational efficiency improvements. We are pleased with our progress in recent quarters and remain committed to achieving acceptable levels of profitability by leveraging our strong brands and superior service platform in new niche markets as well as continuing to strengthen existing relationships."

Specialty Products reported third-quarter operating profits of $0.1 million compared with $3.3 million last year. Net sales increased 3 percent while shipments declined 1 percent. "A 4 percent gain in average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution.  could only partially offset the impact of higher fiber and energy costs," Mr. Howatt explained. "Highly competitive market conditions have limited our ability to increase product selling prices and slowed growth of our higher-margin, value-added val·ue-add·ed
adj.
Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution:
 grades. Even so, we remain confident in our ability to drive long-term Long-term

Three or more years. In the context of accounting, more than 1 year.


long-term

1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term.
 profitability by pursuing new market opportunities, leveraging product innovation and improving operational efficiencies."

Towel & Tissue's third-quarter operating profits increased 7 percent to a record $11.5 million from $10.8 million last year. Net sales and shipments were up 12 percent and 6 percent, respectively. "Selling price increases and mix improvement continue to drive record profitability," Mr. Howatt stated. "While away-from-home towel and tissue markets have grown 2 percent in 2006, our value-added product shipments have increased 15 percent, demonstrating the success of our niche market strategy."

Mr. Howatt also noted that the company sold approximately 5,800 acres of timberland in the third quarter, a substantial increase from year-ago and second-quarter levels. "We are pleased with the pace of timberland sales in the third quarter and expect that sales of the 34,000 acres remaining in our program will be completed within the next three years," Mr. Howatt stated. Also during the third quarter the company repurchased 160,000 shares of common stock, and has approximately 1.6 million shares remaining under a previous board authorization The right or permission to use a system resource; the process of granting access. See access control. .

Commenting on the fourth-quarter outlook, Mr. Howatt said, "Energy prices have moderated while fiber prices are continuing to increase even as we enter the seasonally slower fourth quarter. While underlying market conditions remain strong for our Towel & Tissue business, conditions remain less certain for Specialty Products and Printing & Writing. With continuing cost pressures and seasonally weak demand influencing results, we expect fourth-quarter earnings to fall in the range of $0.10 per share to $0.12 per share, including after-tax timberland sales gains comparable to the $0.08 per share reported in the third quarter." In the 2005 fourth quarter, Wausau Paper reported a net loss of $0.19 per share, which included a charge of $0.10 per share related to the closure of the Brokaw pulp mill and a gain of $0.01 from the sale of timberlands.

Wausau Paper's third-quarter conference call is scheduled for 11:00 a.m. (EDT EDT
abbr.
Eastern Daylight Time


EDT Eastern Daylight Time

EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York

EDT 
) on Wednesday Wednesday: see week. , October 25, and can be accessed through the company's Web site at www.wausaupaper.com under "Investor Information." A replay of the webcast will be available at the same site through November 1.

Wausau Paper produces fine printing and writing papers, technical specialty papers, and "away-from-home" towel and tissue products.

Safe Harbor Safe Harbor

1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.

2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive.
 under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995: The matters discussed in this news release concerning the company's future performance or anticipated financial results are forward-looking statements forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
 and are made pursuant to the safe harbor provisions of the Securities Reform Act of 1995. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in these statements. Among other things, these risks and uncertainties include the strength of the economy and demand for paper products, increases in raw material and energy prices, manufacturing problems at company facilities, and other risks and assumptions described under "Information Concerning Forward-Looking Statements" in Item 7 and in Item 1A of the company's Form 10-K Form 10-K

A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.


Form 10-K

See 10-K.
 for the year ended December 31, 2005. The company assumes no obligation to update or supplement forward-looking statements that become untrue un·true  
adj. un·tru·er, un·tru·est
1. Contrary to fact; false.

2. Deviating from a standard; not straight, even, level, or exact.

3. Disloyal; unfaithful.
 because of subsequent events.
[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]
Note 1.  Balance sheet amounts at September 30, 2006, are unaudited.
         The December 31, 2005, amounts are derived from audited
         financial statements.

Note 2.  Effective January 1, 2006, Wausau Paper adopted Statement of
         Financial Accounting Standard No. 123 (revised 2004),
         "Share-Based Payment."  This accounting standard requires
         compensation cost relating to share-based payment
         transactions be recognized in the financial statements.
         We elected the modified prospective transition method to
         implement this new standard.  Share-based payment awards that
         are settled in cash continue to be classified as a liability;
         however, rather than remeasuring the award at the intrinsic-
         value each reporting period, the award is remeasured at its
         fair value each reporting period.  The difference between the
         liability as previously computed (i.e., intrinsic value) and
         the fair value of the liability award on the date of
         adoption, net of any related tax effects, is recorded as
         a cumulative effect of a change in accounting principle.

Note 3.  In July 2005, Wausau Paper announced plans to permanently
         close the sulfite pulp mill at our Brokaw, Wisconsin,
         facility. The pulp mill was closed in November 2005 and the
         related long-lived assets were abandoned.  No closure-related
         charges impacting cost of sales were incurred during the
         three-month period ended September 30, 2006.  The cost of
         sales for the three-month period ended September 30, 2005, as
         reflected in the Condensed Statements of Operations, includes
         a pre-tax charge of $20.6 million for adjustments of pulp
         mill inventory to net realizable value and accelerated
         depreciation on assets that were abandoned upon closure. The
         cost of sales for the nine-month period ended September 30,
         2006 and 2005, include $0.1 million and $29.9 million,
         respectively, in pre-tax charges for adjustments of pulp mill
         inventory to net realizable value and, in 2005, accelerated
         depreciation on the long-lived assets that were abandoned
         upon closure.  Restructuring expense for the three-month
         period ended September 30, 2006 and 2005, reflects a pre-tax
         charge of $0.01 million and $0.2 million, respectively, for
         other associated closure costs.  Restructuring expense for
         the nine-month period ended September 30, 2006 and 2005,
         reflects a pre-tax charge of $0.2 million and $0.4 million,
         respectively, for other associated closure costs.

Note 4.  Interim Segment Information
         Wausau Paper has reclassified certain prior-year interim
         segment information to conform to the 2006 presentation. The
         reclassification is the result of a reporting change,
         effective January 1, 2006, for timberland assets held for
         sale and gains from the disposal of such assets from
         operating segments to corporate.

         Wausau Paper's operations are classified into three principal
         reportable segments: Specialty Products, Printing & Writing,
         and Towel & Tissue, each providing different products.
         Separate management of each segment is required because each
         business unit is subject to different marketing, production,
         and technology strategies.

         Specialty Products produces specialty papers at its
         manufacturing facilities in Rhinelander, Wisconsin; Mosinee,
         Wisconsin; and Jay, Maine. Specialty Products also includes
         two converting facilities that produce laminated roll wrap
         and related specialty finishing and packaging products.
         Printing & Writing produces a broad line of premium printing
         and writing grades at manufacturing facilities in Brokaw,
         Wisconsin; Groveton, New Hampshire; and Brainerd, Minnesota.
         Printing & Writing also includes a converting facility that
         converts printing and writing grades. Towel & Tissue produces
         a complete line of towel and tissue products that are
         marketed along with soap and dispensing systems for the
         "away-from-home" market. Towel & Tissue operates a paper mill
         in Middletown, Ohio and a converting facility in Harrodsburg,
         Kentucky.
[TABLE OMITTED]
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Oct 24, 2006
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