Glatfelter (NYSE: GLT) today reported first quarter of 2018 net income of $5.7 million, or $0.13 per diluted share compared with $11.6 million, or $0.26 per diluted share in the first quarter of 2017. Adjusted earnings for the first quarter of 2018 were $8.6 million, or $0.19 per diluted share compared with $17.2 million, or $0.39 per diluted share for the same period a year ago. Adjusted earnings is a non-GAAP measure for which a reconciliation is provided within this release.
Consolidated net sales totaled $410.6 million and $390.7 million for the three months ended March 31, 2018 and 2017, respectively. Foreign currency translation favorably impacted the year-over-year comparison by $21.8 million. On a constant currency basis, Composite Fibers’ net sales were essentially flat and Advanced Airlaid Materials’ increased by 7.8%. Specialty Papers’ net sales declined 3.1% in the year-over-year comparison.
“Our engineered materials businesses continued to deliver solid performance in the first quarter despite a higher raw material inflation environment,” said Dante C. Parrini, Chairman and Chief Executive Officer. “Our Advanced Airlaid Materials business grew shipments by 6% over the prior year period driven by hygiene, wipes and home care products. This business also achieved a major strategic milestone this quarter – beginning production and commercial shipments from our new facility in Fort Smith, Arkansas. In Composite Fibers, growth in wallcover and technical specialty products drove a 3% increase in shipments and a 6% improvement in operating profit.”
Mr. Parrini continued, “Profitability for our Specialty Papers business was down, but in-line with our expectations. However, we are encouraged by improving supply-demand conditions from industry capacity reductions that have resulted in an increase in operating rates and improved pricing dynamics. This enabled us to achieve volume growth of 1.3% and an increase in average selling prices of $33 per ton compared with the fourth quarter of 2017. We expect prices to continue moving higher in the coming quarters as operating rates remain high.”
“Looking ahead, our engineered materials businesses represent significant opportunity for Glatfelter as we remain focused on accelerating growth. We are excited about the prospects for Advanced Airlaid Materials, and we expect the Fort Smith facility to enable this business to deliver projected volume growth of 10% to 12% this year. Demand for our Composite Fibers products remains strong and we believe its performance will continue to strengthen throughout the year. We will continue our unrelenting pursuit of cost efficiencies and process improvements across our business as we work to offset rising input costs. In addition, we anticipate our cash flow profile to improve significantly with the major capital programs now behind us,” Parrini concluded.
As announced in February, the Company made the decision to review strategic alternatives for its Specialty Papers business. Its review is ongoing and there can be no assurance that this review will result in a particular outcome.
more detail at: http://www.glatfelter.com/about_us/news_events/press_release.aspx?PRID=209