Consolidated net sales for the 2Q 2013 totaled $426 million, a quarterly record and a 10.7% increase compared with $384.7 million in the 2Q 2012 reflecting organic growth of 3.1% and acquisition growth of 7.2%.
“We generated strong results in our Composite Fibers and Advanced Airlaid Materials businesses during the 2Q,” said Dante C. Parrini, chairman and CEO. “Operating profit for Composite Fibers more than doubled during the quarter driven by both organic growth and a strong start from the Dresden acquisition. Our Advanced Airlaid Materials business improved operating profit by 14% driven by a 7% improvement in net sales. Shipments for the Specialty Papers business continued to outperform the broader market but lower selling prices and unexpected operating disruptions led to disappointing results for the second quarter.”
Mr. Parrini continued, “We are well positioned to generate improved results, as the benefits from a number of our recent strategic and operating initiatives continue to be realized. We are increasing our earnings accretion estimate for the Dresden acquisition to $0.45 to $0.50 per share on an annualized basis, compared with our initial estimate of $0.25 per share as a result of new estimated depreciation and amortization expense. We also expect continued organic growth in our Composite Fibers and Advanced Airlaid Materials businesses, and we are focused on improving the operating performance in Specialty Papers.”
For the first six months of 2013, adjusted earnings totaled $22.5 million, or $0.51 per diluted share, compared with $24.2 million, or $0.56 per diluted share, in 2012. On a GAAP basis, the Company reported net income of $16.6 million, or $0.38 per diluted share, compared with net income of $32.3 million, or $0.74 per diluted share, in 2012. The results of operations for both periods include the impact of significant unusual and non-recurring items.
Consolidated net sales for the first half of 2012 were $831.2 million, a 6.3% increase compared with $782 million for the same period of 2012. Organic growth totaled 2.5% and the remainder related to the Dresden acquisition.
Glatfelter is a global manufacturer of specialty papers and fiber-based engineered materials, offering over a century of experience, technical expertise and world-class service.