Magnera Corp · Q2 2022 earnings

Briefing

Glatfelter reported a loss from continuing operations, but outperformed operating profit expectations driven by Composite Fibers and Airlaid Materials.

Glatfelter reported a loss from continuing operations of $2.5 million, or $0.05 per share, for the second quarter of 2022, compared to a net income of $1.5 million, or $0.03 per share, in the same period a year ago. Consolidated net sales for the three months ended June 30, 2022, totaled $364.0 million compared to $244.9 million last year. The company's Spunlace segment faced substantially higher than expected inflationary challenges during the quarter, and price increases were insufficient to offset the impact.

• Outperformed operating profit expectations at the enterprise level driven by Composite Fibers and Airlaid Materials.
• Successfully converted 50% of Composite Fibers revenue base to a cost pass-through mechanism ahead of plan.
• Airlaid Materials delivered solid performance with profitability stronger than expected due to pricing actions, favorable product mix and the successful execution of a capital project at our Falkenhagen facility.
• Spunlace segment faced substantially higher than expected inflationary challenges during the quarter and supply chain disruptions also affected raw material availability, which curtailed production and product shipments.

Headline financials

Revenue & EPS history

Glatfelter anticipates the challenging business environment will continue at least for the remainder of 2022 and remains keenly focused on improving Spunlace performance and executing an intensive enterprise-wide initiative aimed at rapidly improving Glatfelter's overall profitability and execution capacity.