Glatfelter Corporation incurred a second-quarter 2024 earnings per share (EPS) loss of 35 cents from continuing operations, narrower than a loss of 82 cents per share in the prior-year quarter.
Net sales for the quarter were $329.4 million, down 7.7% from $357 million in the year-ago quarter.
Glatfelter's overall performance in the second quarter was marked by mixed results across its segments. Despite the decline in revenue, the company saw a notable improvement in adjusted EBITDA, which increased to $25.6 million, up $17.3 million from the same period in the previous year. This improvement was driven by better performance in the Composite Fibers and Spunlace segments, while the Airlaid Materials segment faced challenges that impacted its results.
Glatfelter's gross profit in the second quarter of 2024 was $36.8 million, a significant improvement from $18.1 million in the second quarter of 2023. However, the company incurred a net loss of $16.3 million in the reported quarter, narrower than the net loss of $36.9 million in the second quarter of 2023.
Airlaid Materials
The Airlaid Materials segment faced a difficult quarter, with a 14.4% year-over-year decline in net sales, totaling $130.6 million. This decline was largely driven by a 3.7% decrease in shipment volumes and a 13% drop in EBITDA to $15.1 million. The segment's performance was negatively impacted by lower selling prices due to cost pass-through arrangements and reduced energy surcharges in Europe. Although raw material and energy costs were lower, leading to some offsetting benefits, these were not enough to fully mitigate the impact of lower shipments and reduced production volumes.
Composite Fibers
Composite Fibers showed significant improvement with a 3.1% increase in shipment volumes and an EBITDA increase of 102.2% to $9.7 million. However, net sales declined by 6.8% to $117.2 million, primarily due to a $7.5 million reduction in selling prices. The segment benefited from favorable cost conditions, with lower raw material, energy and freight costs. Enhanced operational efficiency, particularly in inclined wire production, also contributed positively to the results.
Spunlace
The Spunlace segment outperformed its peers with a 4.9% increase in shipments and a 3.5% rise in net sales to $82.2 million. EBITDA surged 158.4% to $5.6 million, driven by lower raw material and energy costs, which offset the impact of lower selling prices. The segment's operations were bolstered by higher production volumes to meet growing customer demand, further supporting its positive performance during the quarter.
Financial Position (As of Jun 30, 2024)
Glatfelter reported cash and cash equivalents of $33.9 million, down from $50.3 million at the end of 2023.
The company's total assets also declined, standing at $1.5 billion compared to $1.6 billion at the end of 2023.
Total debt increased slightly to $870.3 million from $860.3 million.
Meanwhile, shareholders' equity saw a significant reduction, dropping to $205.5 million from $256.9 million as of Dec 31, 2023.
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