Glatfelter (GLT, Financial) filed Quarterly Report for the period ended 2009-06-30.
Glatfelter is a paper manufacturing company that manufactures printing papers and tobacco and other specialty papers. The company sells its products throughout the United States and in a number of foreign countries. Most of the company\'s printing paper products are directed at the uncoated free-sheet portion of the industry. The company\'s tobacco and other specialty papers are used for cigarette manufacturing and other specialty uses such as the manufacture of playing cards stamps labels and surgical gowns. Glatfelter has a market cap of $497.6 million; its shares were traded at around $10.93 with a P/E ratio of 10.6 and P/S ratio of 0.4. The dividend yield of Glatfelter stocks is 3.4%. Glatfelter had an annual average earning growth of 3.5% over the past 5 years.
In addition, our after-tax consolidated results of operations were adversely affected by $13.8 million of lower gains in 2009 from the sale of timberlands. We also recorded $3.7 million of pension expense in the first six months of 2009 compared with pension income of $8.0 million in the year-earlier quarter.
The above items increased earnings by $30.4 million, or $0.67 per diluted share, in the first six months of 2009. In the comparable period a year ago, the above items increased earnings by $8.6 million, or $0.19 per diluted share.
In the Specialty Papers business unit, net sales for the first six months of 2009 decreased $24.3 million to $384.0 million. Operating income totaled $12.0 million, an increase of $1.2 million, or 11.1%, over the same period a year ago. The improved operating income is primarily due to increases in average selling prices outpacing increases in input costs and improved operating efficiencies. Higher average selling prices contributed $7.6 million of the increase in operating profit. These price increases were
In Composite Fibers, net sales were $186.6 million for the first six months of 2009, a decline of $30.9 million from the year-earlier period. Operating income declined by $3.9 million in the comparison to $9.1 million. Total volumes shipped by this business unit declined 10.1% led by lower shipments of composite laminates and metallized products, which declined 26.3% and 9.3%, respectively, and, to a lesser extent, a 1.4% decline in food & beverage paper product shipments. The translation of foreign currencies adversely impacted net sales by $26.6 million; however, higher average selling prices contributed $6.8 million.
Selling, general and administrative (SG&A) expenses increased $1.5 million in the period-to-period comparison and totaled $51.1 million for the first six months of 2009. Benefits from our cost control initiatives were more than offset by $1.2 million of pension expense recorded in the first six months of 2009 compared with $2.5 million of pension income in the same period of 2008. In addition, SG&A expenses for the first six months of 2008 included a $1.5 million non-recurring benefit from a recovery in a litigation matter, net of legal fees.
Read the The complete ReportGLT is in the portfolios of Third Avenue Management.
Glatfelter is a paper manufacturing company that manufactures printing papers and tobacco and other specialty papers. The company sells its products throughout the United States and in a number of foreign countries. Most of the company\'s printing paper products are directed at the uncoated free-sheet portion of the industry. The company\'s tobacco and other specialty papers are used for cigarette manufacturing and other specialty uses such as the manufacture of playing cards stamps labels and surgical gowns. Glatfelter has a market cap of $497.6 million; its shares were traded at around $10.93 with a P/E ratio of 10.6 and P/S ratio of 0.4. The dividend yield of Glatfelter stocks is 3.4%. Glatfelter had an annual average earning growth of 3.5% over the past 5 years.
Highlight of Business Operations:
Overview Our results of operations for the first six months of 2009 when compared with the same period of 2008 were significantly and adversely impacted by the weak global economic conditions. Overall volumes shipped by Specialty Papers declined 2.3% and Composite Fibers declined 10.1% in the period-to-period comparison. As a result of the soft demand for most of our products and our efforts to reduce inventory, we incurred significant market-related downtime at many of our facilities which adversely affected results of operations. However, we generated $64.9 million of cash from operations, including alternative fuel mixture credits, by reducing inventories, controlling costs and deferring discretionary capital spending. During the first half of 2009, we registered two of our facilities with the U.S. Internal Revenue Service as alternative fuel mixers based on their use of black liquor as an alternative fuel source. Our results of operations in the first half of 2009 included, on a pre-tax basis, $40.8 million of alternative fuel mixture credits, of which $29.7 million was received in cash. We intend to realize remaining credits in the form of non-taxable income tax credits.In addition, our after-tax consolidated results of operations were adversely affected by $13.8 million of lower gains in 2009 from the sale of timberlands. We also recorded $3.7 million of pension expense in the first six months of 2009 compared with pension income of $8.0 million in the year-earlier quarter.
The above items increased earnings by $30.4 million, or $0.67 per diluted share, in the first six months of 2009. In the comparable period a year ago, the above items increased earnings by $8.6 million, or $0.19 per diluted share.
In the Specialty Papers business unit, net sales for the first six months of 2009 decreased $24.3 million to $384.0 million. Operating income totaled $12.0 million, an increase of $1.2 million, or 11.1%, over the same period a year ago. The improved operating income is primarily due to increases in average selling prices outpacing increases in input costs and improved operating efficiencies. Higher average selling prices contributed $7.6 million of the increase in operating profit. These price increases were
In Composite Fibers, net sales were $186.6 million for the first six months of 2009, a decline of $30.9 million from the year-earlier period. Operating income declined by $3.9 million in the comparison to $9.1 million. Total volumes shipped by this business unit declined 10.1% led by lower shipments of composite laminates and metallized products, which declined 26.3% and 9.3%, respectively, and, to a lesser extent, a 1.4% decline in food & beverage paper product shipments. The translation of foreign currencies adversely impacted net sales by $26.6 million; however, higher average selling prices contributed $6.8 million.
Selling, general and administrative (SG&A) expenses increased $1.5 million in the period-to-period comparison and totaled $51.1 million for the first six months of 2009. Benefits from our cost control initiatives were more than offset by $1.2 million of pension expense recorded in the first six months of 2009 compared with $2.5 million of pension income in the same period of 2008. In addition, SG&A expenses for the first six months of 2008 included a $1.5 million non-recurring benefit from a recovery in a litigation matter, net of legal fees.
Read the The complete ReportGLT is in the portfolios of Third Avenue Management.
