“Our growth businesses of Composite Fibers and Advanced Airlaid Materials delivered significantly higher operating profit during the fourth quarter,” says Dante C. Parrini, chairman and CEO. “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 improvement in quarterly operating profit compared to a year ago. I am obviously very disappointed with the 60% decline in operating profit for Specialty Papers. During the quarter, a 12% 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.”
Glatfelter will continue to invest in both organic growth opportunities and acquisitions to capitalize on its leading positions in growing markets such as tea, single serve coffee, feminine hygiene and nonwoven wall covering.
The company’s advanced airlaid sales increased 4.3% to $66 million during the quarter while operating income increased 56.2%.
For the full year, sales reached a record $1.7 billion. Highlights of the year included the completion of the Dresden Papier acquisition, 19% profit increase in Advanced Airlaid Materials, a $50 million capacity expansion for Composite Fibers.