02.09.16
For the 2015 fourth quarter Glatfelter reported adjusted earnings of $22.9 million compared with $19.7 million in the 2014 fourth quarter. On a GAAP basis, fourth quarter 2015 net income totaled $34.3 million compared with $19.6 million in the fourth quarter of 2014. Consolidated net sales totaled $412.9 million in the fourth quarter of 2015 compared with $436.3 million in the fourth quarter of 2014. On a constant currency basis, net sales declined $5.1 million, or 1.2%.
“Our fourth-quarter 2015 financial results reflect a solid finish to a very challenging year,” says Dante C. Parrini, chairman and CEO. “In the fourth quarter, we saw solid growth in key product lines within our Composite Fibers and Advanced Airlaid Materials businesses and earnings growth across all three of our business segments. We also delivered improved overall earnings and cash flow performance as the full effects of our previously announced continuous improvement and cost reduction initiatives were realized.
“Overall, I am pleased with how our team managed through the many challenges we faced in 2015 by capitalizing on improved demand for single-serve coffee, tea and Advanced Airlaid Materials products during the second half of the year, and withstanding the ongoing weakness in Russia and Ukraine and currency headwinds. Our performance during the year was also driven by our successful execution of cost reduction and continuous improvement initiatives which delivered full year savings of $31 million, exceeding our target for the year."
Glatfelter’s Advanced Airlaid Materials’ net sales decreased $3.9 million largely due to $4.6 million of unfavorable currency translation and a $1.5 million negative impact from lower selling prices which more than offset the benefit of higher shipping volumes.
Fourth quarter 2015 operating income increased 4.5% compared to the same quarter a year ago as lower raw material and energy costs of $2.2 million more than offset the adverse impact of lower selling prices, downtime for incremental capacity expansion projects, other inflationary costs and a one-time benefit in the fourth quarter of 2014. Currency translation favorably impacted operating income by $0.8 million.
“Our fourth-quarter 2015 financial results reflect a solid finish to a very challenging year,” says Dante C. Parrini, chairman and CEO. “In the fourth quarter, we saw solid growth in key product lines within our Composite Fibers and Advanced Airlaid Materials businesses and earnings growth across all three of our business segments. We also delivered improved overall earnings and cash flow performance as the full effects of our previously announced continuous improvement and cost reduction initiatives were realized.
“Overall, I am pleased with how our team managed through the many challenges we faced in 2015 by capitalizing on improved demand for single-serve coffee, tea and Advanced Airlaid Materials products during the second half of the year, and withstanding the ongoing weakness in Russia and Ukraine and currency headwinds. Our performance during the year was also driven by our successful execution of cost reduction and continuous improvement initiatives which delivered full year savings of $31 million, exceeding our target for the year."
Glatfelter’s Advanced Airlaid Materials’ net sales decreased $3.9 million largely due to $4.6 million of unfavorable currency translation and a $1.5 million negative impact from lower selling prices which more than offset the benefit of higher shipping volumes.
Fourth quarter 2015 operating income increased 4.5% compared to the same quarter a year ago as lower raw material and energy costs of $2.2 million more than offset the adverse impact of lower selling prices, downtime for incremental capacity expansion projects, other inflationary costs and a one-time benefit in the fourth quarter of 2014. Currency translation favorably impacted operating income by $0.8 million.
