Glatfelter Reports Strong Results – Nonwovens Industry Magazine
Airlaid Materials net sales increased by $ 40.5 million year-over-year, driven by the full first quarter of Mount Holly sales as well as higher selling prices thanks to the agreements passing on costs to customers. Shipments increased 25.2% driven by Mount Holly as well as improved demand for tableware and wipes, slightly offset by lower shipments of hygiene products. Currency conversion was favorable by $ 0.5 million.
“Airlaid Materials performed strongly in the quarter due to improved demand for wipes and tableware, which exceeded expectations. Our contractual cost pass-through agreements with customers offset most of the inflationary pressures, while increased shipments, coupled with an improved product lineup, supported operating profit growth and favorable margins, ”said said Dante C. Parrini, President and CEO. “As headwinds of inflation dominated the global economy, our composite fiber segment continued to increase prices. Although we managed to improve prices by almost $ 6 million to offset rising input costs, the third quarter brought additional inflation and significant increases in energy prices that negatively impacted the profitability.