Aug 08, 2006. /Lesprom Network/. Glatfelter reported on August 8 that its second quarter 2006 results were significantly impacted by its recent acquisitions, the shutdown of its Neenah facility and increased costs and reduced production volumes associated with annual maintenance outages at its U.S. facilities. The company reported a net loss of $20.7 million, or $0.46 per share, for the second quarter of 2006, compared to net income of $1.7 million, or $0.04 per diluted share, in the same quarter a year ago. The reported results for the current year’s quarter include, all on an after-tax basis, Neenah related shutdown charges of $14.9 million, acquisition integration costs of $2.3 million and a $1.8 million charge for the early redemption of outstanding debt. These charges were partially offset by a $0.6 million after-tax gain on the sale of timberlands and $0.1 million of insurance recoveries. The 2005 second quarter results include a $1.4 million, after-tax, gain from insurance recoveries. Excluding these items from each period’s results, adjusted earnings, which constitute a non-GAAP financial measure, were a loss of $2.4 million, or $0.05 per share in the second quarter of 2006 and earnings of $0.3 million or $0.01 per diluted share in the comparable quarter of 2005. Net sales totalled $279.7 million for the second quarter of 2006, an increase of $134.4 million, or 92.5%, compared to the same quarter a year ago. “This has been a tremendously active period of transition for our company. Our quarterly financial results were adversely impacted by the costs of significant actions to integrate recent acquisitions, annual maintenance outages, and a major papermaking machine upgrade,” said George H. Glatfelter II, chairman and chief executive officer. “Meanwhile, business performance remains strong and continues to improve. The specialty papers business unit is benefiting from strong orders and a favorable pricing environment. Furthermore, our composite fibers business unit, formerly known as long fiber and overlay papers, also benefited from improving order patterns in many of its markets for the second consecutive quarter.” Commenting on the outlook for remainder of 2006, Mr. Glatfelter stated, “Business conditions remain strong for our specialty papers business with prices rising in most of our markets. With our annual maintenance outages and the major machine upgrade now complete, we expect this business to maintain its strong operating rates for the remainder of the year. We also expect stable market conditions in most of our composite fibers markets.” Mr. Glatfelter added, “We have made great progress in executing integration plans at Chillicothe and we are continuing to work through the regulatory proceedings involving the Lydney, U.K. facility. With respect to the Chillicothe acquisition, we are focused on continuing the high level of service to the carbonless and book publishing markets, optimizing production of book paper and continuing integration efforts related to logistics and information technology, among other areas. I am very pleased with our accomplishments so far and we remain on track to achieve our objectives.” Headquartered in York, Pennsylvania, Glatfelter is a global manufacturer of specialty papers and engineered products. U.S. operations include facilities in Spring Grove, Pennsylvania, and Chillicothe and Fremont, Ohio. International operations include facilities in Germany, France, the United Kingdom and the Philippines and a representative office in China. Glatfelter’s common stock is traded on the New York Stock Exchange.