Consolidated net sales totaled $405.8 million and $387.3 million for the three months ended June 30, 2018 and 2017, respectively. Composite Fibers’ and Advanced Airlaid Materials’ net sales increased by 1.5% and 11.3%, respectively, on a constant currency basis. Specialty Papers’ net sales declined 0.7% in the quarter-over-quarter comparison.
Dante C. Parrini, chairman & CEO, comments: “While our second-quarter financial performance was weaker than expected, we are confident our engineered materials platform continues to represent significant opportunity for Glatfelter and value for our shareholders. Our Advanced Airlaid Materials business is positioned to accelerate its growth as utilization of the new capacity increases. In addition, we anticipate closing on our announced acquisition of Georgia-Pacific’s European nonwovens business during the fourth quarter, pending regulatory approval. This transaction is expected to be immediately accretive, and we look forward to adding its complementary products to our Airlaid Materials portfolio. Composite Fibers will continue to face competitive market conditions and raw material cost challenges in the near term; nonetheless, we remain a leader in the end-markets served and continue to be optimistic about the market growth potential.”
In June 2018 the company announced a definitive agreement to purchase Georgia-Pacific’s European nonwovens business, based in Steinfurt, Germany, for $185 million, subject to customary purchase price adjustments. The facility produces high-quality airlaid products for the table-top, wipes, hygiene, food pad, and other nonwoven materials markets. The Steinfurt facility is a state-of-the-art, 32,000-metric-ton-capacity manufacturing facility that employs approximately 220 people.