Consolidated net sales for the 3Q 2013 totaled $456.6 million, a quarterly record and a 12.9% increase compared with $404.4 million in the 3Q 2012 reflecting organic growth on a constant currency basis of 1.5% and acquisition growth of 9.9%.
“We continue to generate healthy growth in our key markets of tea and single-serve coffee, nonwoven wall covering and feminine hygiene,” said Dante C. Parrini, chairman and CEO. “Our Composite Fibers business delivered a very strong quarter with operating profit increasing 84% driven by the Dresden acquisition and organic operating profit growth of 17%. Our Advanced Airlaid Materials business grew revenue by 14% while operating profit declined slightly compared to last year due to two fires at its facilities during the quarter that disrupted operations. Adjusting to exclude the impact of the unplanned outages, Advanced Airlaid Materials business improved operating profit by 23%. Our Specialty Papers business continued to experience difficult market conditions that led to a 16%decline in operating profit. However, we expect recent announcements of industry capacity closures to improve the market environment as we move into 2014.”
Mr. Parrini continued, “As we approach the end of 2013, I am encouraged by the performance of our two growth businesses and believe we are well positioned to finish this year strong and with momentum heading into 2014. During the year, we made significant investments to expand our ability to serve attractive global markets where we have leadership positions that I believe will continue to drive improved earnings and healthy free cash flows.”
On a GAAP basis, for the first nine months of 2013, the Company reported net income of $50.7 million, or $1.15 per diluted share, compared with net income of $52.4 million, or $1.20 per diluted share, in 2012.
For the first nine months of 2013, adjusted earnings totaled $46.8 million, or $1.06 per diluted share, compared with $43.5 million, or $1.00 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 nine months of 2013 were $1,287.8 million, an 8.6% increase compared with $1,186.4 million for the same period of 2012. Organic growth totaled 2.1% 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. U.S. operations include facilities in Spring Grove, PA and Chillicothe and Fremont, OH.