Neenah Sets Fourth Quarter Revenue Record – Nonwovens Industry Magazine
Technical Products net sales of $166.7 million in the fourth quarter increased 27% from prior year sales of $131.2 million. Revenue increased due to additional net sales of $37.7 million resulting from the Itasa acquisition and pricing actions to recover raw material cost increases. These increases were offset by a lower value sales mix in 2021, which included the impacts of limited availability of certain raw materials due to supply chain constraints, unfavorable currency translation and the impact of the closure of the Appleton plant in September.
Consolidated net sales of $1.028 billion in 2021 were 30% higher than the prior year. The increase in net sales was mainly driven by strong organic volume growth in both segments, pricing actions in response to input cost increases and the acquisition of Itasa which contributed $106.9 million dollars to the change in the technical products segment. Net sales increased by 38% in Technical Products and by 18% in Fine Papers and Packaging. In addition to the additional impacts from Itasa, Technical Products segment volume increased significantly, but was impacted by a lower value sales mix in 2021. The increase in Fine Paper and Packaging segment net sales was due to higher demand, higher selling prices and a higher value-added sales mix.
“Demand remained very strong in the fourth quarter and we started to see improved margins amid challenging manufacturing and supply chain conditions. We continue to address this dynamic environment with pricing actions and other internal initiatives to restore margins, including multiple annual pricing agreements taking effect in early 2022,” said Julie Schertell, CEO. “Looking back, 2021 was a foundation year for Neenah. We have taken decisive steps to expand and streamline our business, including a strategic acquisition and plant closure, while making significant progress on our strategic program. I am confident that our decisions and actions have positioned us well for continued revenue growth, margin expansion and shareholder value creation.