Glatfelter on Tuesday (Oct. 29) reported third quarter revenue was up more than 10%. The company, which operates a manufacturing facility in Fort Smith, also reported earnings per share of 22 cents, better than the consensus estimate of 18 cents.
Revenue in the third quarter totaled $232.515 million, up 10.8% over the same quarter in 2018. Net income in the quarter was $12.224 million, well ahead of the $95.8 million loss in the same quarter of 2018. However, the third quarter and full year of 2018 included a significant loss of income from discontinued operations, with most of that coming from the October 2018 sale of its specialty papers business.
Revenue in the first three quarters of 2019 totaled $696.701 million, up 9.4% over the $636.806 million in the same period of 2018. Net income for the first three months of 2019 was $23.341 million, up over the $97.5 million loss in 2018.
The equity market liked the quarterly report. Glatfelter shares (NYSE: GLT) closed Tuesday at $17.35, up $1.63, or 10.37%. During the past 52 weeks the share price has ranged between $18.70 and $9.29.
“Glatfelter delivered another quarter of solid performance driven by continued momentum in Airlaid Materials and accelerated progress toward our previously announced cost reduction targets,” Dante Parrini, company chairman and CEO said in the earnings statement. “In the third quarter, Airlaid Materials had another record-setting quarter growing both volumes and net sales by nearly 50% and more than doubling operating profit over the prior year. These results were driven by a 16% increase in year-over-year shipments from our legacy business, as well as the successful integration of our Steinfurt acquisition.”
The company in October 2018 completed the acquisition of Georgia-Pacific’s European nonwovens business for $185 million. The deal included Georgia-Pacific’s operations located in Steinfurt, Germany, along with sales offices located in France and Italy.
York, Pa.-based Glatfelter acquired in March 2016 what was then the empty 232,000-square-foot Mitsubishi building at Chaffee Crossing. The company invested $90 million to transform the facility into a specialty materials production plant that employed around 65 when it opened in June 2018.
Glatfelter’s Fort Smith plant is part of the company’s Advanced Airlaid Materials business, and the largest customers for products made in Fort Smith include Walmart and Rockline Industries.
“Airlaid Materials’ net sales increased $34.1 million primarily due to the Steinfurt acquisition and a 15.8% organic increase in shipping volumes reflecting strong growth in wipes, hygiene and table top products,” the company noted in the earnings report.
Glatfelter is a global manufacturer of fiber-based engineered materials used in coffee filters, baby wipes, adult diapers, feminine hygiene products and a wide range of other products. The company’s annualized net sales approximate $925 million with customers in more than 100 countries and approximately 2,600 employees worldwide. Operations include 11 manufacturing facilities in the United States, Canada, Germany, France, the United Kingdom and the Philippines.