Glatfelter (NYSE: GLT) today reported net income of $12.1 million, or $0.27 per diluted share for the third quarter of 2017 compared with net income of $19.6 million, or $0.44 per diluted share in the third quarter of 2016. Adjusted earnings for the third quarter of 2017 was $21.9 million, or $0.50 per diluted share compared with $24.0 million, or $0.54 per diluted share, for the same period a year ago. On an adjusted basis, earnings before interest, taxes, depreciation and amortization and excluding pension expense (“Adjusted EBITDA”) for the three months ended September 30, 2017 and 2016, totaled $50.6 million and $49.1 million, respectively, an increase of 3.1%. Adjusted earnings and Adjusted EBITDA are non-GAAP financials measures for which reconciliations to the nearest GAAP-based measure are provided within this release.
Consolidated net sales totaled $413.3 million and $405.3 million for the three months ended September 30, 2017 and 2016, respectively. In the Composite Fibers and Advanced Airlaid Materials business units, net sales increased by 5.0% and 6.6%, respectively, on a constant currency basis. Specialty Papers’ net sales declined 4.0% in the quarter-over-quarter comparison.
“Our third quarter results reflect continued strong performance from our engineered materials businesses,” said Dante C. Parrini, Chairman and Chief Executive Officer. “Composite Fibers and Advanced Airlaid Materials each posted revenue and profit growth during the quarter compared to the prior year. Composite Fibers delivered a 17% improvement in operating profit driven primarily by a strong recovery in shipments of wallcover products and growth in other key product lines. Likewise, our Advanced Airlaid Materials business generated a 29% profit improvement with volume growth largely coming from personal hygiene and wipes products. The strength of these businesses counterbalanced results from Specialty Papers, which continued to be challenged by the supply-demand and pricing pressures in the uncoated free sheet market.”
Mr. Parrini continued, “Looking ahead to the fourth quarter, we expect our engineered materials businesses to post a solid finish to the year. We are also excited about the initial start-up of our new airlaid facility in Fort Smith, Arkansas which we expect will allow us to meet our target for commercial shipments beginning in the first quarter of 2018. Specialty Papers’ markets remain challenging but we are working to implement the recently announced price increase and we expect to realize the full run-rate benefit of the cost improvement actions we took in the third quarter. With the wrap-up of our major capital programs this year and the growth potential in our engineered materials businesses, we expect significantly improved cash flow in 2018.”
more detail at http://www.glatfelter.com/about_us/news_events/press_release.aspx?PRID=201