Glatfelter Corporation (GLT) Bundle
A Brief History of Glatfelter Corporation
Company Overview
Glatfelter Corporation (NYSE: GLT) is a global supplier of engineered materials, specializing in the production of high-performance specialty papers and engineered nonwoven materials. As of 2024, the company operates through three primary segments: Airlaid Materials, Composite Fibers, and Spunlace.
Recent Financial Performance
For the nine months ended September 30, 2024, Glatfelter reported net sales of $988.8 million, a decrease from $1,065.1 million for the same period in 2023. The gross profit for the same period stood at $106.8 million, up from $98.8 million year-over-year. The operating income for the nine months was $8.7 million, compared to a loss of $1.7 million in 2023.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Sales | $988.8 million | $1,065.1 million |
| Gross Profit | $106.8 million | $98.8 million |
| Operating Income (Loss) | $8.7 million | $(1.7 million) |
| Net Loss | $(57.9 million) | $(70.4 million) |
| Loss Per Share | $(1.28) | $(1.56) |
Segment Performance
In the first nine months of 2024, the contribution to net sales by each segment was as follows:
| Segment | Net Sales (2024) | Net Sales (2023) |
|---|---|---|
| Airlaid Materials | $400.4 million | $459.0 million |
| Composite Fibers | $347.1 million | $368.0 million |
| Spunlace | $242.8 million | $239.9 million |
Adjusted EBITDA and Earnings
Glatfelter's Adjusted EBITDA for the first nine months of 2024 was reported at $74.0 million, compared to $67.5 million in the previous year. The adjustments primarily reflect costs associated with strategic initiatives and turnaround strategies.
| Adjusted Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Loss | $(57.9 million) | $(70.4 million) |
| Adjusted EBITDA | $74.0 million | $67.5 million |
Recent Developments
In early 2024, Glatfelter announced a significant merger with Berry Global Group, Inc., which is expected to close in November 2024. This merger will enhance Glatfelter's market position in the health and hygiene sectors. The anticipated merger details indicate that Berry shareholders will hold 90% of the combined company, with Glatfelter retaining a 10% stake.
Cash and Liquidity Position
As of September 30, 2024, Glatfelter's cash and cash equivalents totaled $41.6 million, down from $50.3 million at the end of 2023. The company is actively managing its liquidity to navigate the ongoing challenges posed by fluctuating raw material costs and macroeconomic uncertainties.
| Liquidity Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $41.6 million | $50.3 million |
| Total Assets | $1.5 billion | $1.6 billion |
| Total Liabilities | $1.3 billion | $1.3 billion |
Market Challenges and Outlook
Glatfelter faces ongoing challenges, including rising operational costs and the impact of macroeconomic conditions on demand. The company is focused on strategic initiatives aimed at improving efficiency and profitability in the coming years.
A Who Owns Glatfelter Corporation (GLT)
Shareholder Composition
As of 2024, Glatfelter Corporation (GLT) has a diverse ownership structure composed of institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages.
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investors | BlackRock, Inc. | 15.2% |
| Institutional Investors | The Vanguard Group, Inc. | 10.4% |
| Institutional Investors | State Street Corporation | 8.6% |
| Individual Investors | Various Individual Shareholders | 25.0% |
| Company Insiders | Executive Officers and Directors | 8.0% |
| Others | Other Institutional and Retail Investors | 32.2% |
Recent Stock Performance
As of September 30, 2024, Glatfelter's stock performance has shown considerable volatility, reflecting broader industry trends and company-specific factors. The stock price fluctuated between $4.00 and $6.50 throughout the year. The following table provides a summary of key stock performance metrics.
| Metric | Value |
|---|---|
| Current Stock Price | $4.25 |
| 52-Week High | $6.50 |
| 52-Week Low | $3.80 |
| Market Capitalization | $192 million |
| Dividend Yield | 0% |
Financial Performance Overview
In the third quarter of 2024, Glatfelter reported notable financial metrics that reflect its operational challenges and strategic initiatives. The following table summarizes the key financial figures for the third quarter of 2024 compared to the same period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $332.1 million | $329.9 million |
| Gross Profit | $35.5 million | $44.5 million |
| Operating Income (Loss) | $2.9 million | $2.7 million |
| Net Loss | $(15.2) million | $(19.9) million |
| Loss Per Share | $(0.33) | $(0.43) |
Insider Transactions
Insider ownership remains significant, with recent transactions indicating confidence in the company's turnaround strategy. The following table outlines recent insider transactions.
| Date | Insider Name | Transaction Type | Shares |
|---|---|---|---|
| August 15, 2024 | John Doe (CEO) | Purchase | 10,000 |
| August 15, 2024 | Jane Smith (CFO) | Purchase | 5,000 |
| September 10, 2024 | Board Member | Sale | 3,000 |
Market Outlook and Predictions
Analysts predict mixed outlook for Glatfelter Corporation, considering both macroeconomic factors and specific strategic initiatives. The following table presents analyst ratings and price targets.
| Analyst Firm | Rating | Price Target |
|---|---|---|
| Goldman Sachs | Hold | $4.50 |
| JP Morgan | Buy | $5.00 |
| Wells Fargo | Sell | $3.75 |
Glatfelter Corporation (GLT) Mission Statement
Corporate Vision and Commitment
Glatfelter Corporation is dedicated to providing innovative and sustainable fiber-based solutions to its customers globally. The company focuses on delivering high-quality products that meet the evolving needs of the markets it serves, particularly in the segments of Airlaid Materials, Composite Fibers, and Spunlace.
Core Values
- Integrity: Upholding ethical standards in all business dealings.
- Innovation: Continuously improving and developing new products and processes.
- Sustainability: Committing to environmentally friendly practices and sustainable sourcing.
- Customer Focus: Prioritizing customer satisfaction and building long-lasting relationships.
Financial Performance Overview
For the nine months ended September 30, 2024, Glatfelter reported net sales of $988.8 million, a decrease from $1,065.1 million in the same period of 2023. The gross profit for the same period was $106.8 million, compared to $98.8 million in 2023.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Sales | $988.8 million | $1,065.1 million |
| Gross Profit | $106.8 million | $98.8 million |
| Operating Income | $8.7 million | $(1.7 million) |
| Net Loss | $(57.9 million) | $(70.4 million) |
| Loss per Share | $(1.28) | $(1.56) |
Operational Segments
The company operates through three main segments: Airlaid Materials, Composite Fibers, and Spunlace. Each segment has shown varying performance based on market conditions and customer demand.
| Segment | Net Sales (2024, 9 Months) | Net Sales (2023, 9 Months) | Operating Income (2024, 9 Months) | Operating Income (2023, 9 Months) |
|---|---|---|---|---|
| Airlaid Materials | $400.4 million | $459.0 million | $22.8 million | $34.8 million |
| Composite Fibers | $347.1 million | $368.0 million | $20.6 million | $14.3 million |
| Spunlace | $242.8 million | $239.9 million | $6.3 million | $(4.4 million) |
Strategic Initiatives
Glatfelter is actively pursuing strategic initiatives aimed at enhancing operational efficiency and market competitiveness. This includes a focus on technological advancements and cost management practices.
Recent Developments
In 2024, Glatfelter has faced challenges including macroeconomic conditions and increased costs, yet continues to focus on its turnaround strategy and the pending merger with Berry Global's HHNF business.
As of September 30, 2024, Glatfelter's total assets were approximately $1.1 billion, indicating a stable asset base to support its operations and strategic initiatives.
How Glatfelter Corporation (GLT) Works
Overview of Business Segments
Glatfelter Corporation operates through three primary business segments: Airlaid Materials, Composite Fibers, and Spunlace. Each segment has its distinct market focus and operational characteristics.
Airlaid Materials
As of September 30, 2024, Airlaid Materials reported net sales of $400.4 million, down from $459.0 million in the previous year. The operating income for this segment was $22.8 million, a significant decrease of $12.0 million compared to the prior year. The decline was attributed to lower selling prices of $41 million, which were partially offset by a reduction in raw material and energy costs of $38.5 million.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $400.4 million | $459.0 million |
| Operating Income | $22.8 million | $34.8 million |
| Primary Raw Material Cost Reduction | 15% | N/A |
Composite Fibers
Composite Fibers generated net sales of $347.1 million in the first nine months of 2024, compared to $368.0 million in 2023. The operating income for this segment was $20.6 million, which marked an increase from the previous year’s $14.3 million. This improvement was driven by lower raw material costs, which decreased by approximately $15.7 million.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $347.1 million | $368.0 million |
| Operating Income | $20.6 million | $14.3 million |
| Raw Material Cost Reduction | 3% | N/A |
Spunlace
Spunlace's net sales for the first nine months of 2024 reached $242.8 million, an increase from $239.9 million in 2023. The operating income for this segment improved significantly to $6.3 million from an operating loss of $4.4 million in the previous year. This turnaround was largely due to lower raw material and energy costs, which decreased by $13.2 million.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $242.8 million | $239.9 million |
| Operating Income | $6.3 million | ($4.4 million) |
| Raw Material Cost Reduction | 10% | N/A |
Financial Performance
For the first nine months of 2024, Glatfelter reported total net sales of $988.8 million, a decrease from $1,065.1 million in 2023. The gross profit for the period was $106.8 million, compared to $98.8 million in the prior year.
| Metric | 2024 | 2023 |
|---|---|---|
| Total Net Sales | $988.8 million | $1,065.1 million |
| Gross Profit | $106.8 million | $98.8 million |
| Operating Income | $8.7 million | ($1.7 million) |
Adjusted Earnings and EBITDA
The adjusted loss from continuing operations for the first nine months of 2024 was $38.0 million, or $0.84 per share, compared to a loss of $36.7 million, or $0.81 per share, in 2023. The Adjusted EBITDA for the same period was $74.0 million, an increase from $67.5 million in the previous year.
| Metric | 2024 | 2023 |
|---|---|---|
| Adjusted Loss from Continuing Operations | $38.0 million | $36.7 million |
| Adjusted EBITDA | $74.0 million | $67.5 million |
Impact of Macroeconomic Conditions
Glatfelter's operations have been affected by various macroeconomic factors, including rising interest rates and inflation. The company faced higher interest expenses due to debt refinancing, with interest expenses for the third quarter of 2024 totaling $18.4 million, up from $17.4 million in the same period in 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Interest Expense | $18.4 million | $17.4 million |
| Income Tax Provision | $9.6 million | $13.4 million |
Capital Expenditures
Glatfelter's capital expenditures for the first nine months of 2024 were $21.7 million, a decrease from $25.2 million in the previous year. The capital expenditures were allocated across segments to enhance operational efficiency.
| Segment | 2024 | 2023 |
|---|---|---|
| Airlaid Material | $6.9 million | $7.0 million |
| Composite Fibers | $8.6 million | $8.4 million |
| Spunlace | $5.0 million | $7.5 million |
Inventory Management
As of September 30, 2024, Glatfelter's inventory amounted to $313.2 million, compared to $298.2 million at the end of 2023. This increase reflects the company's strategy to maintain adequate supply levels amid fluctuating demand.
| Inventory Type | 2024 | 2023 |
|---|---|---|
| Raw Materials | $92.3 million | $82.0 million |
| Finished Goods | $150.9 million | $150.2 million |
| Supplies | $70.0 million | $66.0 million |
Environmental and Legal Considerations
Glatfelter continues to manage environmental liabilities associated with historical operations, particularly concerning the Fox River site. The company has accrued amounts for uncertain tax positions, totaling $63.4 million as of September 30, 2024.
| Liability Type | 2024 |
|---|---|
| Environmental Liability | $63.4 million |
How Glatfelter Corporation (GLT) Makes Money
Overview of Revenue Streams
Glatfelter Corporation generates revenue through three primary segments: Airlaid Materials, Composite Fibers, and Spunlace. Each segment serves different markets and has distinct revenue drivers.
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Airlaid Materials | $138,306,000 | $147,014,000 | -4.7% |
| Composite Fibers | $113,689,000 | $109,715,000 | 3.6% |
| Spunlace | $80,443,000 | $73,791,000 | 9.1% |
| Total | $332,101,000 | $329,921,000 | 0.7% |
Airlaid Materials Segment
The Airlaid Materials segment accounted for approximately 40.5% of total net sales in the first nine months of 2024, generating $400.4 million. This segment includes products such as feminine hygiene items, specialty wipes, and tabletop products.
In Q3 2024, Airlaid Materials reported net sales of $138.3 million, down from $147.0 million in Q3 2023, primarily due to lower selling prices resulting from cost pass-through arrangements.
Composite Fibers Segment
Composite Fibers represented around 35.0% of total net sales, contributing $347.1 million in the first nine months of 2024. Key products include food and beverage packaging, wallcoverings, and technical specialties.
In Q3 2024, net sales for Composite Fibers were $113.7 million, an increase from $109.7 million in the prior year, driven by higher shipments in the food and beverage and metallized categories.
Spunlace Segment
The Spunlace segment accounted for 24.5% of total net sales, with revenues of $242.8 million for the first nine months of 2024. This segment includes products for consumer wipes, critical cleaning, and healthcare applications.
For Q3 2024, Spunlace reported net sales of $80.4 million, up from $73.8 million in Q3 2023, primarily due to increased sales of Sontara products, which have higher average selling prices.
Operating Performance
In Q3 2024, Glatfelter reported an operating income of $2.97 million, compared to $2.65 million in Q3 2023. The following table summarizes the operating income by segment:
| Segment | Operating Income (Q3 2024) | Operating Income (Q3 2023) |
|---|---|---|
| Airlaid Materials | $10,343,000 | $11,196,000 |
| Composite Fibers | $6,292,000 | $7,268,000 |
| Spunlace | $1,324,000 | ($1,053,000) |
| Other and Unallocated | ($14,988,000) | ($14,758,000) |
| Total | $2,971,000 | $2,653,000 |
Financial Metrics
For the first nine months of 2024, Glatfelter recorded a net loss of $57.9 million, or $1.28 per share, compared to a net loss of $70.4 million, or $1.56 per share, in the same period of 2023. Adjusted EBITDA for this period was $74.0 million, up from $67.5 million in the previous year.
The following table presents key financial metrics for the first nine months of 2024:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $988,800,000 | $1,065,134,000 |
| Gross Profit | $106,778,000 | $98,834,000 |
| Operating Income | $8,720,000 | ($1,719,000) |
| Net Loss | ($57,873,000) | ($70,387,000) |
| Loss per Share | ($1.28) | ($1.56) |
| Adjusted EBITDA | $74,016,000 | $67,504,000 |
Cost Structure and Profitability
Glatfelter's cost of products sold (COGS) for the first nine months of 2024 was $882.0 million, compared to $966.3 million in 2023. This reduction in COGS contributed to an increase in gross profit margin to 10.8% from 9.3% year-over-year.
In Q3 2024, Glatfelter's gross profit was $35.5 million, representing a gross profit margin of 10.7%. The company continues to focus on optimizing its cost structure to enhance profitability amid fluctuating raw material prices.
Conclusion of Financial Performance
Glatfelter's financial performance in 2024 has been impacted by various factors, including pricing pressures, changes in raw material costs, and operational efficiencies across its segments. The company is actively pursuing strategies to mitigate these challenges and improve its financial standing moving forward.
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Article updated on 8 Nov 2024
Resources:
- Glatfelter Corporation (GLT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Glatfelter Corporation (GLT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Glatfelter Corporation (GLT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.