A $6.33 million pension settlement charge pushed second quarter net income into the red for York, Pa.-based Glatfelter, which has a manufacturing plant in Fort Smith. Revenue in the quarter was down 8%.
Net income for Glatfelter, which produces materials used in coffee filters, baby wipes, adult diapers and many other products, was a loss of $2.414 million in the second quarter, below the $5.931 million gain in the same quarter of 2019. Revenue in the quarter was $216.183 million, down 8% from $235.053 million in the second quarter of 2019.
Without the pension settlement charge and other one-time expenses, adjusted quarterly net income was $9.897 million.
Net income in the first half of 2020 totaled $4.99 million, well below the $11.117 million in the same period of 2019. Revenue in the first half of 2020 was $447.743 million, down 3.5% from $464.186 million in the same period of 2019.
“Glatfelter’s solid second quarter results, in the midst of a global pandemic, demonstrate the resiliency of our new business model and continued demand for our portfolio of engineered materials that are essential for producing a variety of consumer staples,” Dante Parrini, chairman and CEO, said in the earnings report.
In the Airlaid segment, in which the Fort Smith plant operates, second quarter sales were $94.046 million, down from $102.472 million in the same quarter of 2019. Operating income in the sector was $12.292 million, better than the $10.362 million in the same quarter of 2019.
“In Airlaid Materials, we saw exceptional growth in home care and health and hygiene products, although overall shipments for the segment were hampered by the pandemic’s impact on tabletop demand as restaurants around the globe were either closed or operating at dramatically reduced capacity. Despite this headwind on volumes, Airlaid Materials achieved record quarterly EBITDA with margin of 19%,” Parrini noted.
Second quarter sales in the Composite Fibers segment totaled $122.137 million, down from $132.581 million in the same quarter of 2019. Operating income in the segment was $11.487 million, down from $12.985 million in the same quarter of 2019.
The company posted net income of $33.15 million in 2019, well ahead of the $9.198 million in 2018. Full year revenue in 2019 was $927.673 million, up 7.08% from the $866.286 million in 2018.
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. The largest customers for products made in Fort Smith include Walmart and Rockline Industries.
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 2,500 employees worldwide. Operations include 11 manufacturing facilities in the United States, Canada, Germany, France, the United Kingdom and the Philippines.
Glatfelter shares (NYSE: GLT) opened Wednesday at $16.22. During the past 52 weeks the share price has ranged between $19.03 and $9.44.