Glatfelter reported 4.7% decrease of net sales in 2Q2017 y-o-y. According to the announcement, the company’s revenues accounted for USD 387.3 million, generating loss before income taxes of USD 6.1 million in the period.
Dante C. Parrini, Chairman and CEO, commented:
“We had solid growth in shipping volumes and improved performance in our engineered materials businesses during the quarter. However, our overall results for the quarter were lower than expected due to continued weakness in Specialty Papers’ markets. Volumes in our Composite Fibers business strengthened, increasing 3% over last year’s second quarter and 4% year-to-date, driven by improved demand across most product lines and particularly wall cover products. While we are seeing steady growth in the Composite Fibers business, we remain focused on our cost optimization initiatives that are expected to deliver USD 10 million in cost savings in 2017. The Advanced Airlaid Materials business performed well delivering top-line growth and improved profitability, as operating income increased 11% over the prior-year quarter and 10% for the year. For the remainder of 2017, we expect continued growth in shipments and strong operating performance from our engineered materials businesses. We also look forward to the incremental growth expected from our new Fort Smith, Arkansas facility coming on-line later this year with commercial shipments beginning early 2018.
The prolonged supply-demand imbalance in the broader uncoated free sheet market is continuing to put pressure on industry operating rates and selling prices and is driving the need to address excess capacity and our cost structure. Last week, we announced aggressive cost reduction actions including the shutdown of a paper machine at our Chillicothe, Ohio, facility, and headcount reductions of approximately 120 positions across the Specialty Papers business. We anticipate these actions will deliver approximately USD 9 million in annual profit improvement. While these are difficult decisions, we are committed to taking the steps necessary to maintain Specialty Papers’ competitiveness and position Glatfelter for long-term success.”
The company is a global manufacturer of specialty papers and fiber-based engineered materials, offering over a century of experience, technical expertise and world-class service. U.S. operations include facilities in Spring Grove, PA and Chillicothe and Fremont, OH. Its international operations include facilities in Canada, Germany, France, the United Kingdom and the Philippines. It also has sales and distribution offices in Russia and China. Glatfelter’s sales approximate USD 1.7 billion annually.