08.05.21
Glatfelter Corporation, a leading global supplier of engineered materials, today reported net income for the three months ended June 30, 2021 of $1.5 million, or $0.03 per diluted share, compared with a loss of $2.3 million, or a loss of $0.05 per share, in the same period a year ago. The results include the acquisition of GeorgiaPacific’s U.S. nonwovens business in Mount Holly, NC, effective May 13, 2021. Adjusted earnings from continuing operations for the three months ended June 30, 2021 and 2020, were $8.0 million, or $0.18 per share, compared with $9.9 million, or $0.22 per share, respectively.
Consolidated net sales for the three months ended June 30, 2021 totaled $244.9 million, compared with $216.2 million for the same period in 2020.
Airlaid Materials’ net sales increased $9.3 million in the year-over-year comparison, including six weeks of sales its recently acquired Mount Holly, NC site. Shipments were 3.1% higher driven by Mount Holly as well as a significant increase in tabletop demand as in-person dining began to recover globally. These increases were partially offset by lower shipments in the hygiene and wipes categories related to customer destocking from elevated inventory levels maintained during the pandemic.
Airlaid Materials’ second quarter 2021 operating income of $8.4 million was $3.9 million lower when compared to the second quarter of 2020. Higher shipments were more than offset by unfavorable mix negatively impacting earnings by $0.9 million while operations were $1.9 million unfavorable driven by lower production to adjust to customer demand and manage inventory levels. Selling price increases due to raw material pass-through provisions were more than offset by higher raw material and energy prices, reducing earnings by net $0.8 million. The impact of currency and related hedging activity further negatively impacted earnings by $0.3 million.
“Despite entering the second quarter expecting continued softer demand from customer destocking, airlaid materials recorded higher than expected volume growth driven by a rebound in tabletop products as in-person dining began to recover globally,” says Dante C. Parrini, chairman and CEO. “The higher volumes, combined with increased production and a strong contribution from Mount Holly, propelled Glatfelter to deliver positive overall results compared to expectations.
“While we have been navigating the dynamic supply and demand environment stemming from the pandemic, our team remains committed to Glatfelter’s ongoing business transformation by making significant progress in executing our growth strategy," he adds. "The newly-acquired Mount Holly facility made an immediate contribution to our Airlaid segment, and it strategically positions us to participate in the growing demand within health and hygiene categories. Of additional importance, on July 22, we announced the acquisition of Jacob Holm, a global leading manufacturer of premium quality spunlace nonwovens. This transaction will further diversify our end markets and technologies, enhance our overall innovation capabilities and add meaningful scale to the company.”
Composite Fibers’ net sales increased $19.5 million or 15.9% in the second quarter of 2021, compared to the year-ago quarter, mainly driven by a 95% increase in our wallcover sales from the trough of the pandemic in 2020 and favorable currency translation of $10.7 million. Overall shipments, excluding metallized which was restructured in the second quarter of 2020, were up 26% versus the second quarter of 2020.
Consolidated net sales for the three months ended June 30, 2021 totaled $244.9 million, compared with $216.2 million for the same period in 2020.
Airlaid Materials’ net sales increased $9.3 million in the year-over-year comparison, including six weeks of sales its recently acquired Mount Holly, NC site. Shipments were 3.1% higher driven by Mount Holly as well as a significant increase in tabletop demand as in-person dining began to recover globally. These increases were partially offset by lower shipments in the hygiene and wipes categories related to customer destocking from elevated inventory levels maintained during the pandemic.
Airlaid Materials’ second quarter 2021 operating income of $8.4 million was $3.9 million lower when compared to the second quarter of 2020. Higher shipments were more than offset by unfavorable mix negatively impacting earnings by $0.9 million while operations were $1.9 million unfavorable driven by lower production to adjust to customer demand and manage inventory levels. Selling price increases due to raw material pass-through provisions were more than offset by higher raw material and energy prices, reducing earnings by net $0.8 million. The impact of currency and related hedging activity further negatively impacted earnings by $0.3 million.
“Despite entering the second quarter expecting continued softer demand from customer destocking, airlaid materials recorded higher than expected volume growth driven by a rebound in tabletop products as in-person dining began to recover globally,” says Dante C. Parrini, chairman and CEO. “The higher volumes, combined with increased production and a strong contribution from Mount Holly, propelled Glatfelter to deliver positive overall results compared to expectations.
“While we have been navigating the dynamic supply and demand environment stemming from the pandemic, our team remains committed to Glatfelter’s ongoing business transformation by making significant progress in executing our growth strategy," he adds. "The newly-acquired Mount Holly facility made an immediate contribution to our Airlaid segment, and it strategically positions us to participate in the growing demand within health and hygiene categories. Of additional importance, on July 22, we announced the acquisition of Jacob Holm, a global leading manufacturer of premium quality spunlace nonwovens. This transaction will further diversify our end markets and technologies, enhance our overall innovation capabilities and add meaningful scale to the company.”
Composite Fibers’ net sales increased $19.5 million or 15.9% in the second quarter of 2021, compared to the year-ago quarter, mainly driven by a 95% increase in our wallcover sales from the trough of the pandemic in 2020 and favorable currency translation of $10.7 million. Overall shipments, excluding metallized which was restructured in the second quarter of 2020, were up 26% versus the second quarter of 2020.
