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Jun 30, 2023
Glatfelter Q2 2023 Earnings Report
Reported second quarter results with business fundamentals remaining sound despite persistent market and economic headwinds.
Key Takeaways
Glatfelter's second quarter results fell below expectations due to volume losses from industry-wide market weakness and operational events, but the Turnaround Strategy delivered $7 million of benefits. The company lowered its full-year Adjusted EBITDA guidance to $100 million to $110 million due to expected Ober-Schmitten losses.
Net sales were $357 million with a GAAP net loss from continuing operations of $36.6 million.
Volume declined due to industry-wide market weakness and customer destocking, resulting in ~$7 million loss of earnings when combined with downtime to manage inventory levels.
Turnaround Strategy delivered ~$7 million of earnings from price increases and fixed cost reductions.
Q2 2023 financial performance was negatively impacted by operational issues including fires in Fort Smith, Arkansas and Asheville, North Carolina, foreign exchange effects, customer financing, and operating losses at Ober-Schmitten, Germany.
Glatfelter
Glatfelter
Forward Guidance
Full year Adjusted EBITDA guidance range lowered to $100 million to $110 million, driven by 2023 expected Ober-Schmitten losses through wind-down period