GLATFELTER - Despite reporting a drop in net income of US$6.5 million for its third quarter, down from $12.2 million in the same period last year, Glatfelter's airlaid business has built on its previous performance and posted another quarter of record profit.
Consolidated net sales for the same period were $233.5 million compared with $232.5 million during the same period in 2019 with the Composite Fibers’ business and Airlaid Materials’ net sales decreasing by 0.5% and 6.4%, respectively.
“Glatfelter delivered another quarter of solid results as both segments continued to safely produce and deliver essential engineered materials while maintaining a focus on operational excellence and cost discipline.” said Dante C. Parrini, chairman and chief executive officer. “Airlaid Materials continued to build on its strong results from the second quarter, achieving another quarter of record profit."
Airlaid Materials’ net sales decreased $3.8 million in the year-on-year comparison. Despite the 98% sequential quarter improvement in tabletop volumes, shipments overall for the segment were lower by 3.2% on a year-over-year basis due to continued softer demand for tabletop products as restaurants remained operating at dramatically limited capacity. This shortfall in demand was mostly offset by strong orders for home care, feminine hygiene and wipes products.
Airlaid Materials’ third quarter 2020 operating income of $12.9 million was up $1.3 million, or approximately 11% higher, when compared to the third quarter of 2019.
“Our steady performance during these uncertain times is a testament to the resilience of our employees and the agility of our business model, which is emblematic of the New Glatfelter," Parrini added. "We continue to maintain our vigilant efforts to keep Glatfelter people safe and ensure the uninterrupted availability of our products despite the challenging market conditions and volatility caused by the COVID-19 pandemic. Looking ahead, we remain focused on operational excellence and continuing our positive momentum to finish the year strong.”
