Glatfelter Q1 composite fibers organic net sales rise 4.8%

30 Apr '14

2 min read

Glatfelter reported first quarter 2014 net income of $14.6 million, or $0.33 per diluted share, and adjusted earnings of $14.1 million, or $0.32 per diluted share. For the first quarter of 2013, net income was $15.6 million, or $0.36 per diluted share, and adjusted earnings were $17.4 million or $0.40 per share.

Glatfelter:

-Operating profit for growth businesses increased 56%

-Ohio pulp mill production issues resolved

-Severe weather conditions impacted results

Consolidated net sales totaled $455.7 million in the first quarter of 2014, a 12.5 percent increase compared with $405.2 million in the first quarter of 2013. On an organic basis, net sales increased 2.3 percent in the year over year comparison.

Net sales for this business increased $46.7 million, or 41.8 percent, primarily due to the inclusion of Dresden. Excluding Dresden, Composite Fibers’ net sales increased $5.4 million, or 4.8 percent, on an organic basis, primarily due to stronger shipments of tea and single-serve coffee products. Foreign currency translation favorably impacted the year-over-year net sales comparison by $3.7 million.

“Our first-quarter results reflect the continuing strength of our two growth businesses as they delivered a combined 6 percent increase in net sales on an organic basis,” said Dante C. Parrini, chairman and chief executive officer. “Both Composite Fibers, driven by the previously acquired Dresden business, and Advanced Airlaid Materials reported improved operating profit of 65 percent and 30 percent, respectively, over the prior year.

The outlook for Composite Fibers remains positive as the business has greater capacity to meet growing market demand and Advanced Airlaid Materials continues to grow through its leadership positions in growing global hygiene markets.

“In Specialty Papers, we entered 2014 faced with significant challenges presented by pulp mill performance issues in Ohio, which when combined with the impact of severe weather, led to disappointing financial results this quarter. In March, we successfully resolved the pulp mill issues and production has returned to more normalized levels. Looking ahead, I am confident the building blocks are in place to deliver improved performance in this business, as demand for our business continues to be healthy and we are well-positioned to capitalize on improving pricing conditions.”

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Glatfelter

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