Net income more than doubles at Glatfelter in 2013

On a GAAP basis, fourth quarter 2013 net income totaled $16.5 million, or $0.37 per diluted share, compared with $7.0 million, or $0.16 per diluted share, in the fourth quarter of 2012.

Consolidated net sales in the fourth quarter of 2013 totaled $434.8 million compared with $391.4 million in the fourth quarter of 2012. On an organic and constant currency basis, net sales increased 1.1 percent in the fourth quarter of 2013 compared to the fourth quarter of 2012.

“Our growth businesses of Composite Fibers and Advanced Airlaid Materials delivered significantly higher operating profit during the fourth quarter,” said Dante C. Parrini, chairman and chief executive officer. “Healthy growth in their key markets of tea, single-serve coffee and feminine hygiene, together with solid operations and the impact of the Dresden acquisition, led those business units to a combined 95 percent improvement in quarterly operating profit compared to a year ago.

“I am obviously very disappointed with the 60 percent decline in operating profit for Specialty Papers. During the quarter, a 12 percent reduction in pulp production at our Ohio facility led to results that were substantially below our expectations and the year-ago period. We are aggressively taking corrective actions to address this issue and we expect to see improvements as we go forward.”

Parrini continued, “The full year 2013 was a very successful year for Glatfelter as we reported record revenues, significantly grew earnings, completed a significant acquisition and generated substantial free cash flow. As I look ahead, we will continue to execute our strategy which is delivering meaningful results for our shareholders. We have invested in both organic growth opportunities and acquisitions to capitalize on our leading positions in growing markets such as tea, single serve coffee, feminine hygiene and nonwoven wall cover.

“The market environment for Specialty Papers is improving and we are well positioned to take advantage of these conditions. At the same time, we continue to drive operational excellence across our businesses – all of which should enable us to generate substantial earnings growth and healthy free cash flow in 2014.”

Glatfelter