|5/1/98||P. H. Glatfelter Company Announces 1997 Fourth Quarter Earnings|
|1/26/98||P. H. Glatfelter Company Announces 1997 Fourth Quarter Earnings|
|11/14/97||P. H. Glatfelter Company to purchase Schoeller and Hoesch|
|10/16/97||P. H. Glatfelter Company Announces 1997 Third Quarter Earnings|
|7/16/97||P. H. Glatfelter Company Announces 1997 Second Quarter Earnings|
|4/14/97||P. H. Glatfelter Company Announces 1997 First Quarter Earnings|
P. H. GLATFELTER COMPANY ANNOUNCES FIRST QUARTER 1998 EARNINGS
Spring Grove, PA April 20, 1998: P. H. Glatfelter Companys net income and earnings per common share for the three months ended March 31, 1998, were $15,327,000 and $.36, respectively, as compared to $12,823,000 and $.30 for the same period in 1997 and $13,816,000 and $.33 for the fourth quarter of 1997. Net sales for the first three months of 1998 increased 36% to $193,216,000 from $142,185,000 in the first quarter of 1997 and 34% from $143,760,000 in the fourth quarter of 1997. The first quarter results for 1998 include the results of Schoeller & Hoesch, which was acquired on January 2, 1998.
We were pleased with the first quarter results despite the fact that demand for book publishing, envelope and tobacco papers was weak during this period. Higher than normal producer inventories and imports of paper caused prices for many uncoated papers, including envelope and certain other commodity products, to decline modestly in the latter part of the first quarter. Despite these price decreases, average prices for book publishing and envelope papers were higher in the first quarter of 1998 as compared to the like 1997 quarter. P. H. Glatfelters financial results were positively impacted by excellent production results at its domestic facilities. Of particular note are the production levels at the Neenah, Wisconsin facility, which enjoyed its best quarterly results ever for paper and recycled fiber production.
The financial results of the newly-acquired Schoeller & Hoesch subsidiary were at planned levels in the quarter. Demand for long fiber paper (primarily tea bag paper), remained strong, while some weakness in demand for tobacco papers and below planned production levels of metalized papers negatively impacted the results. We are excited about the growth prospects for the Schoeller & Hoesch business as is evident by the recent approval by the Board of Directors of a $6 million capital expenditure to modify one of the paper machines in Gernsbach, Germany. The modification will provide additional capacity to produce long fiber papers and ultra porous plug wrap papers; the latter product is used in the tobacco industry.
As a result of the Asian financial crisis, a great deal of uncertainty is hanging over the global paper markets making it difficult to forecast the balance of the year for the P. H. Glatfelter Company. Certain Asian countries produce considerable amounts of pulp and paper. If Asian economies slow to the point that the output of paper from that part of the world cannot be consumed there, exports from those countries could increase, applying additional pressure to world paper markets. Many Wall Street paper analysts are predicting that demand and pricing will improve in the second half of the year for many paper products. Although we believe that our markets will be more attractive later in the year, we do not believe that there is going to be dramatic improvement. As a result, we will continue to be fiscally conservative, focusing on cash generation by lowering inventory levels, emphasizing cost control at all locations and limiting capital expenditures to necessary replacements and high return projects.
Three Months Ended March 31
|Net Sales||$ 193,216,000||$ 142,185,000|
|Net Income||$ 15,327,000||$ 12,823,000|
|Basic and Diluted Earnings per Share||$ .36||$ .30|
SPRING GROVE, PENNSYLVANIA
SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION
(in thousands except per share amounts)
|Net Sales||$ 193,216||$ 142,185|
|Income Before Income Taxes||24,953||20,717|
|Income Taxes - Current and Deferred||9,626||7,894|
|Basic and Diluted Earnings per Share||.36||.30|
|Number of shares used in per share calculations:|
The Board of Directors has authorized at various times the repurchase in the open market or in privately negotiated transactions of up to 12,000,000 shares of the Company's common stock in the aggregate. Under these authorizations, as of March 31, 1998, the Company had repurchased 11,893,503 shares.
Spring Grove, PA January 26, 1998: P. H. Glatfelter Company's earnings per common share for the fourth quarter of 1997 were $.33 compared to $.40 for the same period in 1996. Net income for the quarter was $13,816,000 versus $16,916,000 recorded for the like period in 1996. Sales for the fourth quarter of 1997 were $143,760,000 compared to $141,314,000 experienced in the 1996 period.
For the year 1997, net income and earnings per common share were $45,284,000 and $1.07, respectively, as compared to $60,399,000 and $1.41 for 1996. Net sales increased slightly to $567,072,000 from $566,084,000 in 1996. Net income as a percentage of sales declined to 8.0% from 10.7% in 1996, but remains well above most other paper companies with whom the Company competes.
Fourth quarter results were negatively impacted by continued weakness in demand for paper products at the Company's Ecusta mill, particularly tobacco papers. That entire mill experienced several days of unplanned downtime and several paper machines were temporarily shutdown for somewhat longer periods of time. Demand for most of the Company's printing papers remained relatively strong during the fourth quarter of 1997 and selling prices on such papers has remained fairly stable. Current uncertainty in the world pulp and paper markets, exacerbated by the recent financial concerns in Southeast Asia, has hindered the U.S. paper industry's ability to pursue additional selling price increases for its products.
Average 1997 selling prices for printing papers were lower than in 1996. Competitive conditions dictated these lower prices. Lower average annual selling prices are the most significant reason for the Company's comparative lower net income and earnings per share results for the year.
The U.S. pulp and paper industry enters 1998
during a period of market uncertainty. The financial problems in
Southeast Asia, coupled with relatively weak world pulp markets,
is providing a climate in which it is most difficult to predict
the future direction of the U.S. paper markets. The Company's
orientation toward specialty products, especially with its recent
acquisition of the specialty paper business of Schoeller and
Hoesch, should allow its financial results to continue to compare
quite favorably to those of its competitors.
Three Months Ended December 31
Year Ended December 31
|Net Sales||$143,760,000||$ 141,314,000||$567,072,000||$566,084,000|
|Net Income||$ 13,816,000||$ 16,916,000||$ 45,284,000||$ 60,399,000|
|Basic and Diluted Earnings per Common Share||$ .33||$ .40||$ 1.07||$ 1.41|
P. H. GLATFELTER TO PURCHASE SCHOELLER AND HOESCH
Spring Grove, PA November 14, 1997: P. H. Glatfelter Company, a producer of printing and writing papers and tobacco and other specialty papers, announces that it has signed a definitive agreement to purchase the specialty paper division of the Schoeller and Hoesch group (S&H), a German company. The company is currently owned by Deutsche Beteiligungs AG and S&H's management.
The purchase price will be DM 270 million (approximately $158 million). It is estimated that at year-end 1997 S&H will have debt of DM 68 million (approximately $40 million). The acquisition will be financed with a multi-currency bank debt instrument. The transaction is expected to be completed in January 1998, subject to approval by the Federal Cartel Office in Germany. P. H. Glatfelter has been advised by BT Wolfensohn in this transaction.
For the fiscal year ended December 31, 1996, S&H had revenues of about DM 296 million (approximately $173 million). S&H produces a variety of specialty papers, including tea bag and other long fiber papers, tobacco papers, metalized papers, overlay and other lightweight printing papers.
S&H was founded in 1881 in Gernsbach, Germany where its corporate offices and major paper production facilities are located. S&H has a smaller paper production facility in Odet, France, with other facilities in Wisches, France, the Philippines, and Summerville, South Carolina. Corporate-wide, S&H employs approximately 940 people.
The acquisition of Schoeller and Hoesch will represent a significant step in Glatfelter's long-term strategic plan which emphasizes growth in technically engineered specialty paper markets. It will provide Glatfelter with a strong business position in the world tea bag market and in other long fiber markets such as stencil, filter, and casing paper. It will also strengthen Glatfelter's tobacco paper business by providing a manufacturing presence in Europe, a significant share of the European tobacco paper market, plus the ability to manufacture and market ultraporous plug wrap, a growing segment of the world tobacco paper market. Furthermore, Glatfelter will continue to grow in its other core markets - book publishing and envelope.
S&H has an experienced management team that will continue to provide the leadership and direction to the business. The exchange of knowledge between the technical and marketing teams of each organization will allow the combined company to achieve various market synergies such as product interchanges, new product development and distribution.
P. H. Glatfelter Company looks forward to working with S&H management to meet the common goals and objectives of each organization - all of which will be better achieved as a result of the combination of these two highly respected paper manufacturers.
Headquartered in Spring Grove, Pennsylvania, P. H. Glatfelter Company operates mills in Spring Grove as well as Neenah, Wisconsin, and Pisgah Forest, North Carolina.
Spring Grove, PA October 15, 1997: P. H. Glatfelter Company's net income and earnings per
common share for the three months ended September 30, 1997, were
$7,423,000 and $.17, respectively, as compared to $13,237,000 and
$.31 for the same period in 1996. Net sales for the three-month
period decreased less than 1% to $139,192,000 from $139,748,000
in 1996. For the first nine months of 1997 net income and
earnings per common share were $31,468,000 and $.74,
respectively, as compared to $43,483,000 and $1.01 for the same
period in 1996. Sales for the nine-month period declined to
$423,312,000 from $424,770,000 in 1996.
Third quarter results were negatively impacted
by several factors, some unexpected in nature. The Spring Grove
mill took its normal annual maintenance downtime in July which
this year required eleven days of downtime in the pulpmill and
eight days on the paper machines. Furthermore, these routine
repair costs exceeded previous years as well as planned levels.
In July we also took unplanned downtime at the Ecusta mill to
adjust our inventories in light of a slowdown in the order
pattern for domestic tobacco papers. On September 2 the Spring
Grove mill experienced a mill-wide power outage which resulted in
unplanned downtime of approximately one day. With our annual
outages, unexpected downtime, and abnormally high spending behind
us, we should be able to return to a more normalized production
pattern with our typical lower cost structure.
For the first nine months of 1997, average
selling prices for printing papers sold from our Spring Grove and
Neenah mills are 9% below the average prices for the like 1996
period. Extremely competitive market conditions have dictated
these lower prices. Lower selling prices are the greatest reason
for the Company's comparative lower net income and earnings per
share results for the nine-month period.
In spite of the disappointing financial results
for the third quarter, we are optimistic about the earnings
prospects for the fourth quarter. Our reason for optimism is
driven by higher selling prices for printing papers sold from the
Spring Grove and Neenah mills. Commodity paper prices (envelope
papers) were increased in July and another price increase is
effective October 1. Book publishing paper prices were increased
on September 1. We expect these price increases to be in full
effect for the fourth quarter. That, coupled with more normalized
production and sales volumes, should allow us to show a
significant increase in our net income.
We are hopeful that the paper industry in
general and the uncoated free sheet segment in particular, is
moving into a period of sustained improvement from a capacity
utilization, pricing and ultimately profit standpoint. Planned
new capacity additions less announced capacity shutdowns should
equate to modest capacity increases over the next several years.
Assuming normal economic growth and hence increased paper
consumption, a more favorable market should exist for our
|Three Months Ended September 30||Nine Months Ended September 30|
|Net Sales||$139,192,000||$ 139,748,000||$423,312,000||$424,770,000|
|Net Income||$ 7,423,000||$ 13,237,000||$ 31,468,000||$ 43,483,000|
|$ .17||$ .31||$ .74||$ 1.01|
P. H. GLATFELTER COMPANY ANNOUNCES SECOND QUARTER EARNINGS
Spring Grove, PA July 16, 1997: P. H. Glatfelter Company's net income and earnings per common share for the three months ended June 30, 1997, were $11,222,000 and $.27, respectively, as compared to $16,276,000 and $.38 for the same period in 1996. Net sales for the three-month period decreased by 2% to $141,935,000 from $144,687,000 in 1996. For the first six months of 1997, net income and earnings per common share were $24,045,000 and $.57, respectively, as compared to $30,246,000 and $.70 for the same period in 1996. Sales for the six-month period decreased slightly to $284,120,000 in 1997 from $285,022,000 in 1996.
The decrease in the Company's net income for the quarter and first six months of 1997 as compared to the like periods in 1996 was primarily due to the impact of significantly lower selling prices for printing papers. Prices for those papers stabilized during the second quarter, and in fact, the Company implemented a modest price increase for commodity printing papers midway through the second quarter. A second price increase for the same commodity products has been announced to be effective August 1. Stronger industry-wide demand for uncoated papers and a firming of the pulp market are the key factors driving the recent paper price increases. We are hopeful that price increases for book publishing papers, a major product line, can be implemented later in the year.
Demand for the Company's printing papers and international tobacco paper products was strong throughout the second quarter of 1997. Domestic tobacco paper demand slowed during the quarter as domestic tobacco paper customers lowered their inventories. We expect this inventory adjustment period to be short-lived.
The Company's production facilities operated at full capacity during the first six months of 1997, unlike the same period in 1996 when downtime was taken due to lack of orders. Furthermore, the Spring Grove, Pennsylvania and Pisgah Forest, North Carolina mills' production rates exceeded expectations throughout the first half of 1997. The Company's sales volume for the first half of 1997 was 10% above that for the comparable 1996 period. A more favorable pricing environment for our printing paper products will allow us to recognize a significant benefit from our increased productive capacity.
Normal annual maintenance shutdowns will be taken in the third quarter at each of our locations. The cigarette paper producing machines will remain down for an additional four-to-five days as a result of the reduction of inventories by the domestic cigarette manufacturers. Although these outages will have a negative impact on the third quarter results, we are optimistic about our earnings' prospects for the second half of the year if price increases for our printing paper products as previously discussed are implemented.
|Three Months Ended June 30||Six Months Ended June 30|
|Net Income||$ 11,222,000||$ 16,276,000||$ 24,045,000||$ 30,246,000|
|$ .27||$ .38||$ .57||$ .70|
Spring Grove, PA April 14, 1997: P. H. Glatfelter Company's net income and earnings per common share for the three months ended March 31, 1997, were $12,823,000 and $.30, respectively, as compared to $13,970,000 and $.32 for the same period in 1996. Net sales for the first three months of 1997 increased to $142,185,000 from $140,335,000 in 1996 primarily as a result of higher sales volume more than offsetting lower selling prices for printing papers.
In spite of the Company's net income declining by 8%, we are pleased with the financial results given the relatively poor state of the paper markets in general. Demand and pricing for the Company's tobacco and other specialty papers remained relatively stable during the quarter. These products continue to generate adequate margins that allow the Company to show much better comparative financial results than most, if not all, of our competitors.
Demand for printing papers, the Company's other
product group, is generally slow during the first quarter of the
year. The first quarter of 1997 was no exception; however, the
Company did not experience any production downtime due to lack of
orders. Downtime was taken during the first quarter of 1996.
Total sales volume for the Company's printing papers increased by
17% in the first quarter of 1997 as compared to the first quarter
of 1996. Selling prices for printing papers during the most
recent quarter were significantly below the levels experienced
during the first quarter of 1996. Lower prices were the result of
an oversupply of paper in the broader commodity paper markets,
and relatively low costs for market pulp, the major raw material
used to manufacture paper.
As of this writing, several price increases
have been announced for certain commodity grades of paper. These
price increases, if they hold, will only have a small positive
impact on the Company's financial performance. We are hopeful
that prices for the Company's products will improve later in the
year or early next year. We believe that the fundamentals of
supply and demand are headed toward better balance than what we
have experienced over the last several years. Capacity within the
uncoated paper markets is expected to increase by only 1.1% per
year over the next three years. If economic growth, and hence
paper consumption, increases at a rate faster than capacity
growth, the Company could be moving into a period where higher
printing paper prices are more likely.
The Company continues to show financial results
that, relative to our peers, are quite good. We are also well
positioned through the capital that we have invested over the
years, and by the projects to be completed in 1997, to produce
and sell more product, including more value-added products. We
are prepared to take full advantage of a paper market upturn.
Three Months Ended March 31
P. H. GLATFELTER COMPANY
SPRING GROVE, PENNSYLVANIA
SUMMARIZED CONSOLIDATED FINANCIAL INFORMATION
(in thousands except per share amounts)
Three Months Ended March 31
|Net sales||$ 142,185||$ 140,335|
|Income before income taxes||20,717||23,024|
|Income taxes - current and deferred||7,894||9,054|
|Earnings per common share||$.30||$.32|
|Number of shares used in per share calculations||42,555||43,302|