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Net income at Glatfelter slides 40% in Q2

07 Aug '15

3 min read

Net income at manufacturer of specialty papers and fibre based engineered materials, Glatfelter slid 40 per cent year over year for the second quarter ending June 30, 2015.

Glatfelter reported second quarter of 2015 net income of $2.8 million, or $0.06 per diluted share, down a steep 40 per cent from net income of $4.7 million, or $0.11 per diluted share from a fiscal ago quarter.

“Consolidated net sales too fell to $410.8 million in the reporting quarter of 2015 compared with $445.3 million in the second quarter of 2014,” Glatfelter said in a press release.

“The translation of non-US dollar sales unfavourably impacted the year-over-year comparison by $29.3 million reflecting a weaker Euro in the Composite Fibers and Advanced Airlaid Materials business units,” it explained.

“During the second quarter, we successfully managed the controllable elements of our business while capitalising on opportunities in many of our markets,” CEO Dante Parrini said.

Glatfelter benefited from strong demand in most of its Composite Fibres product lines, including record demand for its food and beverage products, with shipments up 9 per cent year on year.

In Specialty Papers, Glatfelter added that it continued to outperform the broader uncoated freesheet market.

In addition, its Specialty Papers Unit efficiently completed the annual maintenance outages at its two mills and subsequently delivering record monthly pulp production at the Chillicothe facility.

“However, our business was impacted by ongoing macro-level challenges, including difficult economic conditions in Russia and Ukraine, currency headwinds and softer demand in certain product segments,” Parrini added.

In particular, weak markets in Russia and Ukraine continued to impact Composite Fibres nonwoven wall cover shipments, which were down 19 per cent as against the same period in 2014.

“Advanced Airlaid Materials' results were disappointing this quarter largely due to softer than anticipated demand in the feminine hygiene market,” Parrini informed.

In its outlook for the third quarter, Glatfelter said Composite Fibres shipping volumes are expected to be slightly higher in the third quarter than the second quarter of 2015.

Shipping volumes for Advanced Airlaid Materials in the third quarter of 2015 are anticipated to be 5 per cent higher than the second quarter.

While, average selling prices are expected to decline slightly in the third quarter compared to the second quarter and raw material prices are expected to be in-line.

For Specialty Papers, the Company projects shipping volumes in the third quarter of 2015 to again increase approximately 5 per cent as against the second quarter reflecting normal seasonal patterns.

The Company also expects maintenance spending to decrease by $31 million reflecting more normal patterns of maintenance expense. (AR)

Fibre2Fashion News Desk – India