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Glatfelter composite fibers Q2 sales surge 31.2%

30 Jul '13

4 min read

In the second quarter of 2013, the Company recorded an income tax provision of $2.0 million on adjusted pre-tax earnings resulting in an effective tax rate of 28.2 percent. In the comparable quarter a year ago, the income tax provision totaled $2.1 million and the effective tax rate was 28.0 percent.

“We generated strong results in our Composite Fibers and Advanced Airlaid Materials businesses during the second quarter,” said Dante C. Parrini, chairman and chief executive officer. “Operating profit for Composite Fibers more than doubled during the quarter driven by both organic growth and a strong start from the Dresden acquisition.

"Our Advanced Airlaid Materials business improved operating profit by 14 percent driven by a 7 percent improvement in net sales. Shipments for the Specialty Papers business continued to outperform the broader market but lower selling prices and unexpected operating disruptions led to disappointing results for the second quarter.”

Mr. Parrini continued, “We are well positioned to generate improved results, as the benefits from a number of our recent strategic and operating initiatives continue to be realized. We are increasing our earnings accretion estimate for the Dresden acquisition to $0.45 to $0.50 per share on an annualized basis, compared with our initial estimate of $0.25 per share as a result of new estimated depreciation and amortization expense.

"We also expect continued organic growth in our Composite Fibers and Advanced Airlaid Materials businesses, and we are focused on improving the operating performance in Specialty Papers.”

Glatfelter