Glatfelter Reports Second Quarter 2020 Results

On an adjusted basis, earnings from continuing operations for the three months ended June 30, 2020 and 2019, were $9.9 million, or $0.22 per share, compared with $8.5 million, or $0.19 per share, respectively. Adjusted earnings is a non-GAAP financial measure for which a reconciliation to the nearest GAAP-based measure is provided within this release. Consolidated net sales totaled $216.2 million and $235.1 million for the three months ended June 30, 2020 and 2019, respectively. On a constant currency basis, Composite Fibers’ and Airlaid Materials’ net sales decreased by 6.3% and 7.2%, respectively.

“Glatfelter’s solid second quarter results, in the midst of a global pandemic, demonstrate the resiliency of our new business model and continued demand for our portfolio of engineered materials that are essential for producing a variety of consumer staples,” said Dante C. Parrini, Chairman and Chief Executive Officer. “Composite Fibers outperformed expectations for the quarter, due in part to strong shipments in the food and beverage category and better than expected demand for wallcover products. Profitability for this segment relative to guidance was also better than expected, driven by lower downtime and continued cost control.”

In Airlaid Materials, we saw exceptional growth in home care and health and hygiene products, although overall shipments for the segment were hampered by the pandemic’s impact on tabletop demand as restaurants around the globe were either closed or operating at dramatically reduced capacity. Despite this headwind on volumes, Airlaid Materials achieved record quarterly EBITDA with margin of 19%.”

Mr. Parrini added, “I am proud of how Glatfelter PEOPLE are responding to the challenges related to COVID-19 and are successfully continuing to operate globally while keeping our workforce safe. Glatfelter’s ongoing transformation into a more agile and costeffective business, coupled with a portfolio of essential consumer staples, have enabled us to optimize performance in this unprecedented and volatile year. The trust and confidence of our customers have been further strengthened in these uncertain times by consistently and reliably delivering premium quality products. Due to the strength of our improved balance sheet, the Board demonstrated its commitment to a steady return of capital to shareholders by increasing the dividend in the second quarter.”

Composite Fibers’ net sales decreased $10.4 million or 7.9%, compared to the year-ago quarter driven by lower shipments of wallcover products, which were down 49%, as well as unfavorable foreign currency translation of $2.0 million.

Composite Fibers’ operating income of $11.5 million was $1.5 million lower, or approximately 12% unfavorable, compared to the second quarter of 2019. Lower shipping volumes impacted results by $2.1 million driven predominantly by lower wallcover demand. The downtime required to manage inventory levels for nonwoven wallcover products was mostly offset by improved operations, strong cost control actions and higher production to meet strong demand in our food and beverage category. A benefit of $3.1 million from lower input prices, primarily wood pulp, was partially offset by $2.0 million impact from lower selling prices. Currency unfavorably impacted results by $0.2 million compared to the year-ago quarter.

Airlaid Materials’ net sales decreased $8.4 million in the year-over-year comparison. Shipments were lower by 2.2% due to weak demand for tabletop products as restaurants globally were closed or operated at dramatically limited capacity. This shortfall in demand was mostly offset by strong orders for home care and health and hygiene products. Selling prices were $4.6 million lower due to contractual cost pass-through arrangements, while currency translation was unfavorable by $1.1 million.

Airlaid Materials’ second quarter 2020 operating income of $12.3 million was $1.9 million favorable, or approximately 19% higher, when compared to the second quarter of 2019. Improved sales mix favorably impacted results by $0.6 million, while price declines due to contractual raw material pass-through provisions were more than offset by lower raw material and energy prices, adding net $0.5 million of profit. Efficient operations complemented by disciplined cost control favorably impacted results by $0.9 million, driven by higher demand for essential product categories and improved performance in both North American facilities compared to the year-ago quarter.
https://www.glatfelter.com/wp-content/uploads/GLATFELTER-REPORTS-SECOND-QUARTER-2020-RESULTS-1.pdf

Related Posts

Solenis to Increase Prices on all Sizing Product Lines in EMEA and Asia Pacific

Solenis, a leading global producer of specialty chemicals, will increase prices by 5 to 20 percent on all sizing product lines across the EMEA and Asia Pacific regions, effective immediately or as customer contracts allow. The price increase is necessary due to inflation and availability of raw materials used in manufacturing our sizing product line, elevated freight and energy costs and regulatory compliance requirements. “We are unable to absorb the impact of the increased costs that we are currently experiencing but we will continue to work in partnership with our customers to help mitigate the increases,” said Jose Santolaya, director, EMEA marketing and product management. “Solenis remains committed to controlling costs through process improvements to deliver high-value, innovative solutions that our customers have come to expect.”

Euro-Graph Publishes Monthly Statistics of the European Graphic Papers Industry

Total European shipments of graphic papers in April 2021 were UP 13.9% vs. April 2020 and are down 8.0% year-to-date. Total European shipments of newsprint in April 2021 were UP 1.2% vs. April 2020 and are down 13.6% year-to-date. Total European shipments of sc-magazine in April 2021 were UP 21.4% vs. April 2020 and are down 6.8% year-to-date. Total European shipments of coated mechanical reels in April 2021 were UP 10.3% vs. April 2020 and are down 11.9% year-to-date. Total European shipments of uncoated mechanical (improved & others) in April 2021 were UP 16.9% vs. April 2020 and are down 1.0% year-to-date. Total European shipments of coated woodfree in April 2021 were UP 19.0% vs. April 2020 and are down 10.4% year-to-date. Total European shipments of uncoated woodfree in April 2021 were UP 21.5% vs. April 2020 and are down 1.5% year-to-date.
Back To Top
×Close search
Search