UPDATE 1-Neenah Paper sees better Q4 results vs year-ago

* Cites coal, gas contracts at lower rates

* Says Q4 historically slower

* Shares rise 11 percent to new year-high

BANGALORE, Nov 10 (Reuters) - Neenah Paper Inc (NP.N) expects fourth-quarter results to be better than the year-ago quarter, as the specialty paper products maker was able to sign coal and natural gas contracts at lower rates.

The fourth quarter, particularly December, has traditionally been seasonally weaker and customers remain cautious in their planning horizons, the company said, adding the input costs for pulp and latex were continuing to rise.

However, partly offsetting these will be benefits from lower energy prices in technical products as new annual contracts for both natural gas and coal are at lower prices, Chief Executive Sean Erwin said on a conference call.

The company on Monday posted a better-than-expected third-quarter profit. [ID:nBNG460089]

Shares of the company rose 11 percent to a new year-high of $13.37 in afternoon trade Tuesday on the New York Stock Exchange.

"I am willing to bet the results in the (fourth) quarter will be a hell of a lot better than they were fourth quarter of last year," CEO Erwin said.

"We expect to end the year with spending of less than $10 million. Going forward, base capital spending is expected to be about $15 million annually excluding major strategic investment," Chief Financial Officer Bonnie Lind said.

Lind indicated that Neenah's book tax rate continues to be highly sensitive to changes in the mix of income between tax jurisdictions.

"But regardless of the rate, we do not expect to pay U.S. federal income taxes in the next several years as a result of tax operating losses available following disposal of our pulp operations," Lind said. (Reporting by Arundhati Ramanathan; Editing by Gopakumar Warrier)