Glatfelter, a leading global supplier of engineered materials, has posted net sales of $357 million in the second quarter of fiscal 2023 (Q2 FY23), though this was accompanied by a GAAP net loss from continuing operations of $36.6 million. The company cited industry-wide market weakness and ongoing customer destocking as key factors behind this downturn, which combined with downtime to manage inventory levels, led to approximately $7 million in earnings losses.

In terms of individual segment performance, airlaid materials' Q2 FY23 net sales increased by $8.8 million year-over-year (YoY), primarily due to higher selling prices from cost pass-through arrangements and pricing actions to counter inflation in raw materials and energy. However, its Q2 EBITDA was $2.1 million lower compared to Q2 FY22, at $17.4 million, the company said in a press release.

Composite fibres' revenue increased by $2.4 million in Q2 FY23 compared to the year-ago quarter, driven by higher selling prices. Nevertheless, the segment's EBITDA for the quarter was down at $4.8 million, compared with $10.6 million in Q2 FY22.

Spunlace revenue fell by $17.5 million in Q2 FY23 compared to the previous year, due to lower shipments. However, this was partly offset by higher selling prices and a favourable currency translation, resulting in an almost doubling of EBITDA for the second quarter to $2.2 million.

Taking these factors into account, Glatfelter has revised its full-year adjusted EBITDA guidance range downwards to between $100 million and $110 million.