~ Record quarter for Airlaid Materials and strong results in Composite Fibers, serving essential consumer staples ~
~ All production facilities operational with extensive safety protocols in place to protect employees from COVID-19 ~
YORK, Pennsylvania – May 5, 2020 – Glatfelter (NYSE: GLT), a leading global supplier of engineered materials, today reported its results for the first quarter of 2020 which are summarized in the following table:
On an adjusted basis, earnings from continuing operations for the three months ended March 31, 2020 and 2019 were $10.8 million, or $0.24 per share, compared with $7.3 million, or $0.16 per share, respectively. Adjusted earnings is a non-GAAP financial measure for which a reconciliation to the nearest GAAP-based measure is provided within this release. Consolidated net sales totaled $231.6 million and $229.1 million for the three months ended March 31, 2020 and 2019, respectively. On a constant currency basis, Composite Fibers’ net sales increased by 5.5% and Airlaid Materials’ net sales increased by 0.1%.
“Glatfelter started the year strong by building upon the great strides made through our transformation efforts in 2019,” said Dante C. Parrini, Chairman and Chief Executive Officer. “Both segments delivered excellent performance in the first quarter, increasing shipments and improving profitability over the prior year, while also exceeding quarterly expectations. In Airlaid Materials, shipments were up approximately 6% year-over-year, driven by robust demand for table top, home care and wipes products. This growth, coupled with solid operations, enabled Airlaid Materials to deliver a nearly 20% improvement in operating income and quarterly records for profitability and margins. Composite Fibers increased year-over-year shipments by 14% and operating profit improved by 33%, reflecting strong growth across all product categories while benefiting from lower pulp prices, efficient operations and an improved cost structure.”
Mr. Parrini continued, “As the world responds to COVID-19, the health and safety of our employees and their families are a top priority, and we are taking all necessary measures to protect them. We instituted several new safety, hygiene and communication protocols throughout our facilities and implemented work-from-home arrangements, where practical. We are proud to be part of the essential workforce supporting global response efforts to the pandemic. Accordingly, we are proactively identifying and mitigating risks to safeguard the continuity of our business and are pleased to report that all production facilities remain operational. We are well-positioned to supply our customers high-quality engineered materials necessary to manufacture a variety of consumer staples, including wipes, health and hygiene products, and food and beverage items during this challenging time.”