York, Pa.-based Glatfelter, which has a manufacturing operation in Fort Smith, posted an adjusted net income of $33.15 million in 2019, well ahead of the $9.198 million in 2018. The company beat the consensus estimate on income and full-year revenue.
The 2019 per-share net income of 75 cents beat the consensus estimate of 73 cents. Full year revenue in 2019 was $927.673 million, up 7.08% from the $866.286 million in 2018. The revenue also beat the $912.5 million consensus estimate.
Net income in the fourth quarter was $7.7 million, better than the $1.4 million in the same quarter of 2018. Revenue during the quarter was $230.972 million, just ahead of the $229.48 million in the same quarter of 2018.
However, the company during the fourth quarter posted a one-time, non-cash charge of $75.3 million to account for the ending and settlement of a qualified pension plan. The charge pushed full-year net income to a $21.541 million loss, and fourth-quarter net income to a $44.882 million loss.
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.
“We made substantial progress on our ongoing business transformation in 2019, with more to accomplish in 2020. Coming off a record year for Airlaid Materials, we expect the segment to grow in line with market levels,” Dante Parrini, board chairman and CEO, said in the earnings report posted Thursday (Feb. 6).
The company also announced it will move the corporate headquarter from York to Charlotte, N.C. in mid-2020. Following the sale of the Specialty Papers business in 2018, Glatfelter no longer has a manufacturing presence in York following the 2018 sales of its specialty papers business, after which it reduced its Pennsylvania workforce more than 90%.
“Our decision to move Glatfelter’s headquarters to a larger metropolitan area is another important step in our ongoing transformation. Charlotte provides enhanced access to a larger pool of critical resources and talent for future growth, and the Carolinas are a leading hub for the broader nonwovens industry. Additionally, being near a premier airport like Charlotte Douglas International allows for easier and more efficient business travel,” Parrini said in a statement.
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.
Glatfelter shares (NYSE: GLT) closed Thursday at $17.87, up 25 cents. During the past 52 weeks the share price has ranged between $19.03 and $12.88.