Glatfelter Reports First Quarter 2019 Results

Glatfelter (NYSE: GLT) a leading global supplier of engineered materials, today reported its results for the first quarter of 2019. Due to the divestiture of Specialty Papers, its results are classified as discontinued operations for all periods presented in this release.

On an adjusted basis, earnings from continuing operations for the first quarter of 2019 were $7.3 million, or $0.16 per share compared with $3.9 million, or $0.09 per share, for the same period a year ago. 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 $229.1 million and $211.2 million for the three months ended March 31, 2019 and 2018, respectively. Excluding the Steinfurt, Germany acquisition and on a constant currency basis, Advanced Airlaid Materials’ net sales increased by 19.2% and Composite Fibers’ net sales decreased by 3.3%.

“We reported solid results in the first quarter of 2019 delivering on growth targets for our Advanced Airlaid Materials business and making significant progress with the corporate cost reduction initiatives,” said Dante C. Parrini, Chairman and Chief Executive Officer. “Airlaid Materials’ shipments and operating income grew nearly 40% compared with the first quarter a year ago, reflecting strong organic growth enabled by the Fort Smith, Arkansas capacity expansion in addition to the Steinfurt, Germany acquisition. In Composite Fibers, shipments of food and beverage products improved, driven by single-serve coffee; however, our results were negatively impacted by weak demand for our wallcover and metallized products as well as continued disruptions in the availability of a key fiber due to a fire at the supplier’s facility.”

Mr. Parrini added, “We remain on track to deliver the previously announced $14 million to $16 million of corporate cost reductions by the end of 2020. Additionally, the recently completed debt refinancing is expected to reduce annual interest expense by $6 million in 2019 and $8 million per year going forward, giving us the flexibility and liquidity needed to fuel organic and strategic growth initiatives. And, after many years of litigation, we are pleased the court has approved the consent decree we entered into to resolve our Fox River liability.”

“As we look ahead, in Airlaid Materials, we are confident in our growth prospects and believe we will deliver performance at the higher end of our legacy growth rate estimate of 8% to 10%, and the Steinfurt acquisition is on track to deliver the previously communicated $7 million to $9 million of operating profit in 2019. For Composite Fibers, we are encouraged by new business development activities and moderating pulp prices; however, we are monitoring the market dynamics and managing the risks in our wallcover segment and, as a result, we expect overall volumes for this business to be flat in 2019 versus 2018. We remain confident in the strategic direction of the new Glatfelter and are optimistic about our ability to enhance shareholder value as a more stable, higher-margin, growth-oriented engineered materials company,” Mr. Parrini concluded.
more detail at: http://www.glatfelter.com/about_us/news_events/press_release.aspx?PRID=233

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