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Jun 30, 2022
Glatfelter Q2 2022 Earnings Report
Glatfelter reported a loss from continuing operations, but outperformed operating profit expectations driven by Composite Fibers and Airlaid Materials.
Key Takeaways
Glatfelter reported a loss from continuing operations of $2.5 million, or $0.05 per share, for the second quarter of 2022, compared to a net income of $1.5 million, or $0.03 per share, in the same period a year ago. Consolidated net sales for the three months ended June 30, 2022, totaled $364.0 million compared to $244.9 million last year. The company's Spunlace segment faced substantially higher than expected inflationary challenges during the quarter, and price increases were insufficient to offset the impact.
Outperformed operating profit expectations at the enterprise level driven by Composite Fibers and Airlaid Materials.
Successfully converted 50% of Composite Fibers revenue base to a cost pass-through mechanism ahead of plan.
Airlaid Materials delivered solid performance with profitability stronger than expected due to pricing actions, favorable product mix and the successful execution of a capital project at our Falkenhagen facility.
Spunlace segment faced substantially higher than expected inflationary challenges during the quarter and supply chain disruptions also affected raw material availability, which curtailed production and product shipments.
Glatfelter
Glatfelter
Forward Guidance
Glatfelter anticipates the challenging business environment will continue at least for the remainder of 2022 and remains keenly focused on improving Spunlace performance and executing an intensive enterprise-wide initiative aimed at rapidly improving Glatfelter's overall profitability and execution capacity.