Wausau Paper reported Monday that its net loss for the fourth quarter narrowed following the closure of its oldest mill.

The 114-year-old Wisconsin tissue and specialty paper manufacturer, which has a facility in Middletown, reported a net loss of $2.4 million for the fourth quarter versus a net loss of $28.7 million for the same period during 2011.

Excluding special items, the fourth-quarter net loss from continuing operations was $1.5 million versus net income of $2.5 million in the previous year.

Losses narrowed because of the sale and February closure of its Brokaw, Wisc., facility, which made paper for printing and writing, the company said.

Wausau reported net income of $676 million compared to a loss of $21.7 million in 2011. Sales fell from $203 million to $190.9 million, a 6 percent drop.

The company recently announced plans to divest its specialty papers business, which would include two mills in Wisconsin and one in Brainerd, Minn. The three mills make paper used for packaging, the food industry, linings and masking tape.

Wausau also announced it intended to switch its focus solely to making tissue and towel, which are produced at its mills in Middletown and in Harrodsburg, Ky. The company is investing $220 million in its Kentucky mill there.

The Middletown mill employs about 196 people and produces about 100,000 tons of tissue and towel paper a year, company officials said.

Shares of Wausau Paper stock (NYSE: WPP) closed Monday at $9.78, up 6 cents.