Glatfelter recently reported 2011 second quarter adjusted earnings of $3.1 million, or $0.07 per diluted share, compared with $0.9 million, or $0.02 per diluted share, in the 2010 second quarter. Adjusted earnings for the 2011 second quarter benefited $0.06 per share from favorable tax adjustments. On a GAAP basis, second quarter 2011 net income totaled $2.5 million, or $0.05 per share, compared with $0.1 million, or $0.00 per share, in the second quarter of 2010. Consolidated net sales increased 9.7 percent in the year-to-year comparison and totaled $398.0 million.
"Our businesses continue to generate strong top-line growth and we made significant progress improving Advanced Airlaid Materials’ performance with net sales increasing by 25 percent and operating profit nearly doubling in comparison to last year," said Dante C. Parrini, chairman and chief executive officer. "While our other business units also reported higher revenue, their results were below our expectations. In Composite Fibers, we experienced operating inefficiencies resulting from downtime to manage inventory levels, opportunistic maintenance spend, and challenges qualifying new grades. We incurred higher production costs as we made changes to our machine loading to create capacity to support our customers in the growing single-serve coffee market. In Specialty Papers, results were impacted by operating difficulties in our Spring Grove pulp mill and recovery boiler as well as increased costs of the annual maintenance outages. Our focus on operational excellence has been a key driver of our earnings growth over the last several quarters and I am confident that the operational issues experienced during the second quarter have been addressed and are now behind us.
For the remainder of the year, we expect market conditions to remain generally favorable including continued growth in our tea, coffee and feminine hygiene product lines. We are also focused on improving our operating performance and executing our continuous improvement initiatives which positions us well for a solid second half of the year."
