YORK, Pennsylvania – October 29, 2019 – Glatfelter (NYSE: GLT), a leading global supplier of engineered materials, today reported its results for the third quarter of 2019.
Due to the divestiture of Specialty Papers in October 2018, its results are classified as discontinued operations for all periods presented in this release. The Company’s third quarter 2019 and 2018 results are summarized in the following table:
On an adjusted basis, earnings from continuing operations for the third quarter of 2019 were $9.7 million, or $0.22 per share, compared with $(0.2) million, or $0.00 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 $232.5 million and $209.9 million for the three months ended September 30, 2019 and 2018, respectively. Excluding the Steinfurt, Germany acquisition and on a constant currency basis, Airlaid Materials’ net sales increased by 14.2% and Composite Fibers’ net sales decreased by 4.2%.
“Glatfelter delivered another quarter of solid performance driven by continued momentum in Airlaid Materials and accelerated progress toward our previously announced cost reduction targets,” said Dante C. Parrini, Chairman and Chief Executive Officer. “In the third quarter, Airlaid Materials had another record-setting quarter growing both volumes and net sales by nearly 50% and more than doubling operating profit over the prior year. These results were driven by a 16% increase in year-over-year shipments from our legacy business, as well as the successful integration of our Steinfurt acquisition. We continued to make progress reducing our corporate costs during the quarter and expect to exceed our 2019 targeted savings.”
Mr. Parrini continued, “Composite Fibers continued to face competitive market conditions and the resulting machine downtime from weak demand, translating to lower overall shipments of approximately 11% for the quarter. While the environment is challenging, we remain committed to maintaining our leading market positions while aggressively managing the cost structure to keep Composite Fibers competitive. Our migration from a business unit structure to a functional operating model has also brought greater focus to this part of the business through realignment of the previously announced commercial leadership team and the establishment of an integrated global supply chain function.”
“Looking ahead,” Mr. Parrini commented, “we are confident we will meet our overall cost reduction target of $14 million to $16 million by the end of 2020, which will help drive our transformation to a leaner, more agile engineered materials company. In our Airlaid Materials’ legacy business, shipments were up 13% year to date, and we expect to finish the year at or above the top end of our previously announced target of 8% to 10% volume growth for 2019. At Steinfurt, we have already achieved $6.7 million of operating profit through the first three quarters of 2019, putting us well on track to meet the upper end of our $7 million to $9 million operating profit target for the year. Finally, in Composite Fibers, we are intensifying our efforts to identify opportunities, develop new products and optimize utilization of our Dresden facility to offset the commercial headwinds in wallcover.”