Specialty papers maker
) saw its profit sag 28% year over year in fourth-quarter 2012 to
$7 million or 16 cents per share as costs associated with
strategic initiatives and Fox River litigation, higher tax and
weak economic conditions in Europe crimped its results.
Glatfelter was one of the paper companies sued for polluting the
FIBRIA CELULOSE (FBR): Free Stock Analysis
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Barring one-time items, the company recorded earnings of 26 cents
per share, down from 32 cents registered a year ago. The results
missed the Zacks Consensus Estimate by 9 cents.
For full-year 2012, adjusted earnings of $1.25 per share fell
behind the Zacks Consensus Estimate of $1.34. Earnings, as
reported, rose to $1.36 per share from 93 cents a share in 2011.
Net sales, for the fourth quarter, were essentially flat year
over year at $391.4 million, beating the Zacks Consensus Estimate
of $389 million. Unfavorable currency exchange swings affected
sales in the quarter.
For the full year, net sales edged down 1.6% year over year to
$1,577.8 million, missing the Zacks Consensus Estimate of $1,581
Revenues from the core Specialty Papers unit rose 5.5% to $224.2
million in the reported quarter on higher shipping volumes.
Composite Fibers sales dipped 11.9% to $105.3 million as soft
demand and difficult economic conditions in Europe led to a
decline in shipping volumes. Sales rose 3.3% to $61.8 million in
the Advanced Airlaid Materials unit, aided by higher volumes.
Glatfelter exited 2012 with cash and cash equivalent of $97.7
million, a two-and-a-half fold year-over-year increase. Total
debt rose 10% year over year to $250 million.
Glatfelter is expects to benefit from its ongoing growth
initiatives. The company said that it anticipates shipping volume
for Specialty Papers in first-quarter 2013 to be in line with the
fourth quarter level. For both Composite Fibers and Advanced
Airlaid Materials businesses, it expects shipping volumes to be
5% higher sequentially in the first quarter.
Glatfelter makes specialty papers and fiber-based engineered
materials. Its offerings include security papers, book publishing
papers, envelopes, converting papers, shopping bags, food and
beverage paper, metalized products, composite laminates papers
and feminine hygiene products.
Glatfelter currently retains a Zacks Rank #4 (Sell).
Other paper and paper products companies with favorable Zacks
International Paper Company
KapStone Paper and Packaging Corporation
Fibria Celulose SA
). While Fibria retains a Zacks Rank #1 (Strong Buy), both
International Paper and KapStone hold a Zacks Rank #2 (Buy).