Scott Paper Co. has reported that second quarter earnings were $1.01 per share, compared with 93 cents per share in the same period last year.

Net income rose to $74.6 million, from $71.5 million in the second quarter of 1989. Sales increased 5 percent to $1.32 billion.

According to Chairman Philip E. Lippincott, manufacturing performance improved over the past six months, particularly at the Somerset mill in Skowhegan and at Muskegon, Mich., where major expansion projects are in progress.

“We still have some major challenges ahead of us, (including work on) the third lightweight coated paper machine at our Skowhegan mill before the end of 1990,” said Lippincott.