Glatfelter earnings up on fuel credit

Tue. November 03, 2009; Posted: 02:10 PM

Nov 03, 2009 (York Daily Record - McClatchy-Tribune Information Services via COMTEX) -- GLT | Quote | Chart | News | PowerRating -- York-based paper maker Glatfelter reported its net income in the third quarter doubled compared to last year. The gain was thanks to a boost from an alternative fuels credit from the government.

And, on an adjusted basis, Glatfelter did manage a profit this quarter after a loss of about $10.1 million in the second quarter of this year.

Net income in the third quarter of 2009 was about $46 million, up from about $21.7 million in the third quarter of 2008.

Taking out the fuel credit boost, along with some non-core business items from last year, Glatfelter's adjusted net income was about $13.1 million, down from about $19.5 million in last year's third quarter.

The company's Specialty Papers business segment reported net sales of about $211.6 million, down about 6.4 percent from the $226 million recorded last year.

Average selling prices and product mixes changed in the quarter, contributing to the decline, Glatfelter said. However, compared to the second quarter of this year, sales were up nearly 15 percent, the company said.

Composite fibers reported net sales of about $100.7 million, down about 11.5 percent from the $113.8 million last year.

Glatfelter said the weak economic environment was to blame, and noted its coffee and tea filter papers businesses dropped about 11.2 percent in the quarter.

Glatfelter's alternative fuels tax credits come from its electricity generation from burning a waste material in the

papermaking process called liquor.

Chemical processes that help break down lignin, which hold together wood fibers in wood, produce the liquor. Paper makers need to break down lignin to turn wood into paper.

The liquor and electricity production are part of a circular process through which Glatfelter recaptures and recycles a large part of the materials it uses in paper making.

A conference call with investors to discuss the quarter's results is scheduled for 11 a.m. today.

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For full details on Glatfelter (GLT) click here. Glatfelter (GLT) has Short Term PowerRatings of 4. Details on Glatfelter (GLT) Short Term PowerRatings is available at This Link.

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