UPDATE 1-Neenah Paper Q1 loss narrows

* Q1 loss/shr of $0.04 vs $4.88 year-ago

* Q1 net sales down 35 percent

* Q1 net sales at fine paper segment down 33 pct

May 11 (Reuters) - Neenah Paper Inc's (NP.N) first-quarter loss narrowed as the company brought into effect several cost cutting measures, including the recent closure of its California fine paper mill.

The specialty paper products maker reported a net loss of $0.6 million, or 4 cents a share, compared with a loss of $72.9 million, or $4.88 a share, a year earlier.

Excluding items, Neenah reported a loss of 5 cents a share from continuing operations.

Net sales fell 35 percent to $134.1 million.

Net sales at the company's fine paper segment dropped 33 percent to $64.8 million, hurt by lower volumes resulting from weaker market demand for premium writing, text and cover papers, and inventory destocking by customers.

Last week Neenah said it will close its paper mill in California to consolidate its premium fine paper segment, resulting in a $17 million pre-tax charge in the second quarter. [ID:nBNG384708]