08.20.14
Glatfelter’s three business segments—composite fibers, advanced airlay materials and specialty paper—reported sales of $445.3 million in the second quarter of 2014, a 4.5 percent increase compared with $426 million in the second quarter of 2013 primarily driven by the acquisition of Dresden Papier, a leading producer of nonwoven wallpaper base materials and a supplier to most of the world’s largest wallpaper manufacturers. The company was rebranded into Glatfelter Dresden GmbH, which now is a part of Glatfelter’s composite fiber business.
Glatfelter’s three businesses reported second quarter 2014 net income of $4.7 million, and adjusted earnings of $3.8 million.
Sales for the composite fibers business unit increased $14.4 million, or 10.1 percent, primarily due to the inclusion of a full quarter of Dresden’s results in 2014. Composite fibers’ second-quarter 2014 operating income increased $0.9 million to $17.3 million. Selling prices were down $3.4 million due to increased market competition for wallcover and metalized products. A full quarter of shipments from the Dresden acquisition and a positive mix shift improved operating income by $2.6 million.
On a year-over-year basis, advanced airlaid materials’ net sales increased $4 million, or 6.1 percent, primarily due to a 4 percent increase in shipping volumes.
Second quarter 2014 operating income increased $0.9 million, or 17.4 percent, compared with the year-ago quarter, primarily due to higher shipments of hygiene products.
“Our second quarter results reflect the continued progress of our growth businesses as composite fibers and advanced airlaid materials reported operating income increases of 5 percent and 17 percent, respectively,” says Dante Parrini, Glatfelter’s chairman and chief executive. “In our advanced airlaid materials business, demand has been strong all year and we expect it to continue. In composite fibers, certain product segments are experiencing challenging market conditions.”
Looking ahead to the third quarter, the company expects shipping volumes for its composite fibers and advanced airlaid materials businesses to be higher than the second quarter.
Glatfelter’s three businesses reported second quarter 2014 net income of $4.7 million, and adjusted earnings of $3.8 million.
Sales for the composite fibers business unit increased $14.4 million, or 10.1 percent, primarily due to the inclusion of a full quarter of Dresden’s results in 2014. Composite fibers’ second-quarter 2014 operating income increased $0.9 million to $17.3 million. Selling prices were down $3.4 million due to increased market competition for wallcover and metalized products. A full quarter of shipments from the Dresden acquisition and a positive mix shift improved operating income by $2.6 million.
On a year-over-year basis, advanced airlaid materials’ net sales increased $4 million, or 6.1 percent, primarily due to a 4 percent increase in shipping volumes.
Second quarter 2014 operating income increased $0.9 million, or 17.4 percent, compared with the year-ago quarter, primarily due to higher shipments of hygiene products.
“Our second quarter results reflect the continued progress of our growth businesses as composite fibers and advanced airlaid materials reported operating income increases of 5 percent and 17 percent, respectively,” says Dante Parrini, Glatfelter’s chairman and chief executive. “In our advanced airlaid materials business, demand has been strong all year and we expect it to continue. In composite fibers, certain product segments are experiencing challenging market conditions.”
Looking ahead to the third quarter, the company expects shipping volumes for its composite fibers and advanced airlaid materials businesses to be higher than the second quarter.