Glatfelter Announces Fourth Quarter Results – Nonwovens Industry Magazine

Glatfelter Corporation reported a loss from continuing operations for the fourth quarter of 2021 of $11.2 million, compared to net income of $9.1 million in the same period a year ago. 2021 results prospectively include the acquisitions of the U.S. nonwovens business of Georgia-Pacific (“Mount Holly”) and Jacob Holm (“Spunlace”) effective May 13, 2021 and October 29, 2021, respectively. Consolidated net sales for the three months ended December 31, 2021 totaled $334.5 million, compared to $235.3 million for the same period in 2020. At constant exchange rates, net sales of composite fibers and Airlaid materials (including Mount Holly) increased by 1.3% and 47.5%, respectively. The Spunlace segment, formed as part of the Jacob Holm transaction, had net sales of approximately $58 million prospectively from the October 29, 2021 acquisition date.

Airlaid Materials net sales increased $43.5 million from a year ago, driven by Mount Holly sales as well as higher selling prices from cost-passing agreements with customers . Shipments increased by 23.3%, mainly due to Mount Holly. Higher shipments of traditional tableware products were almost offset by lower shipments of hygiene products and wipes. Currency translation was unfavorable by $2.8 million.

Spunlace shipments for the fourth quarter under Glatfelter ownership (from the acquisition date of October 29, 2021 through December 31, 2021) were approximately 4% lower than our original expectation of 13,000 metric tons and the loss of operating $1.3 million was lower by about $2.3 million. our expectations. The drop in shipments was primarily in the wipes category, as one of its largest wipes customers recalibrated its orders for the quarter to manage year-end inventory, in addition to production delays that were affected. by the availability of raw materials. These factors, combined with an unfavorable mix, negatively impacted profitability by approximately $0.7 million. Additionally, raw material inflation, including synthetic fibers, combined with higher than expected energy costs, lowered earnings by approximately $1.5 million. Operations further negatively impacted results by $1.4 million due to lower production, higher than expected scrap rates and Covid-related labor issues. The preliminary purchase price allocation resulted in approximately $1.7 million of depreciation and amortization due to the increased acquisition of property, plant and equipment and intangible assets.