05.09.24
Glatfelter Corporation reported financial results for the first quarter of 2024 and provided an update on progress of its proposed merger with the majority of Berry’s Global Health, Hygiene and Specialties segment to include its Global Nonwovens and Films (“HHNF”) business.
In the first quarter of 2024, Glatfelter generated net sales of ~$327 million, down from $378 million in the first quarter of 2023.
Airlaid Materials’ first quarter net sales decreased $27.9 million in the year-over-year comparison mainly driven by lower selling prices from cost pass-through arrangements and lower energy surcharges in Europe as both raw materials and energy input costs declined compared to last year. Shipments were 3.7% lower driven by declines in the hygiene categories mainly due to pricing actions taken in 2023 to retain margins. Currency translation was favorable by $0.7 million.
Composite Fibers’ net sales were $16.4 million lower in the first quarter of 2024, compared to the year-ago quarter due to lower selling prices of $11.1 million. Even though shipments were higher 0.7%, it was largely driven by the composite laminates category that have lower average selling prices compared to other inclined wire products and thereby lowering the revenue for the quarter. Currency translation was favorable by $0.9 million.
Spunlace's net sales were $6.6 million lower in the first quarter of 2024 compared to the year-ago quarter, mainly driven by lower selling prices of $4.2 million due to cost pass-through arrangements and lower year over year shipments of 2%. Currency translation was slightly favorable by $0.2 million.
“We continued to execute against our strategy to optimize our portfolio and position the business for long-term profitable growth as we prepare to complete the proposed merger with Berry’s HHNF business to create a new, global specialty materials leader,” says Thomas Fahnemann, president and CEO of Glatfelter. "The team remains focused on delivering meaningful financial performance while ensuring our business segments are well positioned to become part of a larger enterprise that is expected to deliver substantial shareholder value."
As previously announced on February 7, 2024, Glatfelter entered into certain definitive agreements with Berry Global Group, Inc. (“Berry”) for Berry to spin-off and merge the HHNF business with Glatfelter to create a global leader in specialty materials. Upon the completion of the transaction, Glatfelter shareholders are expected to own approximately 10% of the newly combined company. In April, the company achieved a regulatory milestone with the expiration of the required waiting period under the Hart-Scott-Rodino ("HSR") Antitrust Improvements Act. The transaction is subject to further certain customary closing conditions and regulatory approvals that are currently underway including, but not limited to, approval by Glatfelter shareholders. The merger transaction is expected to close in the second half of 2024.
In the first quarter of 2024, Glatfelter generated net sales of ~$327 million, down from $378 million in the first quarter of 2023.
Airlaid Materials’ first quarter net sales decreased $27.9 million in the year-over-year comparison mainly driven by lower selling prices from cost pass-through arrangements and lower energy surcharges in Europe as both raw materials and energy input costs declined compared to last year. Shipments were 3.7% lower driven by declines in the hygiene categories mainly due to pricing actions taken in 2023 to retain margins. Currency translation was favorable by $0.7 million.
Composite Fibers’ net sales were $16.4 million lower in the first quarter of 2024, compared to the year-ago quarter due to lower selling prices of $11.1 million. Even though shipments were higher 0.7%, it was largely driven by the composite laminates category that have lower average selling prices compared to other inclined wire products and thereby lowering the revenue for the quarter. Currency translation was favorable by $0.9 million.
Spunlace's net sales were $6.6 million lower in the first quarter of 2024 compared to the year-ago quarter, mainly driven by lower selling prices of $4.2 million due to cost pass-through arrangements and lower year over year shipments of 2%. Currency translation was slightly favorable by $0.2 million.
“We continued to execute against our strategy to optimize our portfolio and position the business for long-term profitable growth as we prepare to complete the proposed merger with Berry’s HHNF business to create a new, global specialty materials leader,” says Thomas Fahnemann, president and CEO of Glatfelter. "The team remains focused on delivering meaningful financial performance while ensuring our business segments are well positioned to become part of a larger enterprise that is expected to deliver substantial shareholder value."
As previously announced on February 7, 2024, Glatfelter entered into certain definitive agreements with Berry Global Group, Inc. (“Berry”) for Berry to spin-off and merge the HHNF business with Glatfelter to create a global leader in specialty materials. Upon the completion of the transaction, Glatfelter shareholders are expected to own approximately 10% of the newly combined company. In April, the company achieved a regulatory milestone with the expiration of the required waiting period under the Hart-Scott-Rodino ("HSR") Antitrust Improvements Act. The transaction is subject to further certain customary closing conditions and regulatory approvals that are currently underway including, but not limited to, approval by Glatfelter shareholders. The merger transaction is expected to close in the second half of 2024.
