P. H. GLATFELTER COMPANY ANNOUNCES FOURTH QUARTER EARNINGS
Release 9:00 a.m. January 27, 1997
P. H. Glatfelter Company's earnings per common share for the fourth quarter of 1996 were $.40 compared to $.39 for the same period in 1995. Net income for the quarter was $16,916,000, slightly below the $17,186,000 recorded for the like period in 1995. Earnings per share for the 1996 period were about 3% above the 1995 period due to fewer shares outstanding as a result of the Company continuing to buy back common stock under its share repurchase program. The Company's results are outstanding when considering the poor condition of the paper markets in general during the past quarter. Net sales for the fourth quarter of 1996 were $141,314,000 compared to $141,022,000 experienced in the 1995 period as higher volume was offset by lower prices for printing papers.
For the year 1996, net income and earnings per common share were $60,399,000 and $1.41, respectively, as compared to $65,828,000 and $1.49 for 1995. Net sales decreased 9% to $566,084,000 from $623,709,000 in 1995. The Company is pleased with the financial results for 1996 as compared to 1995 as they compare most favorably to those of its competitors. The results again show how the specialty nature of the Company's products distinguishes P. H. Glatfelter from other paper companies.
Many challenges were presented in 1996 for companies that participate in the printing paper portion of the industry. Demand for printing paper products was slow early in the year, improved in the second and third quarters, and then slowed again in the fourth quarter. Pricing for printing papers declined during the year. Demand and pricing for the Company's printing papers, specifically, papers sold to the book publishing industry, held up better than the rest of the printing paper market. Demand and pricing for tobacco and other specialty products were not impacted by the softer printing paper market and remained relatively constant during the year.
As the Company looks into the first part of 1997, it sees continued slow demand and pricing pressure within the printing paper markets. The Company believes demand will improve during the second half of the year and that some price relief may occur during the last six months. Demand and pricing for tobacco and other specialty papers is expected to remain relatively stable throughout the year. The Company is well positioned to capitalize on an improving printing paper market; its focus on niche markets and specialized products will continue to set it apart from other paper companies.
Three Months Ended December 31 Year Ended December 31
1996 1995 1996 1995
Net Sales $ 141,314,000 $ 141,022,000 $ 566,084,000 $ 623,709,000
Net Income $ 16,916,000 $ 17,186,000 $ 60,399,000 $ 65,828,000
Earnings per Common Share $ .40 $ .39 $ 1.41 $ 1.49