Glatfelter recently reported 2010 first quarter adjusted earnings of $8.7 million, or $0.19 per diluted share, which excludes acquisition and integration costs, compared with $11.2 million, or $0.24 per diluted share, in the 2009 first quarter. Adjusted earnings is a non-GAAP measure that excludes from the Company's GAAP-based results certain non-core business items. For a reconciliation of adjusted earnings to GAAP earnings, refer to the tabular presentation at the end of this release.
On a GAAP basis, results for the first quarter were a net loss of $0.4 million, or $0.01 per share, compared with net income of $11.5 million, or $0.25 per diluted share, for the same quarter last year. The 2010 first quarter results include $9.1 million, after-tax, of acquisition and integration related costs associated with the Concert Industries Corp. acquisition completed in February 2010. The 2009 first quarter net income benefited from $0.4 million in after-tax gains from the sale of timberlands. Consolidated net sales for the first quarter of 2010 were $337.3 million, a 15.7 percent increase compared with $291.6 million for the first quarter of 2009, reflecting improved demand and the inclusion of Concert, now operated and reported as the Company’s Advanced Airlaid Materials business unit.
"Each of our businesses is beginning to benefit from stronger order patterns as the economy improves," said George H. Glatfelter II, Chairman and Chief Executive Officer. "During the quarter, volumes shipped in our Specialty Papers business increased 4 percent and the Composite Fibers business was up 11 percent compared with a year ago reflecting improving market demand and successful business development initiatives. As a result, our operating rates are at or near capacity. However, it was an uncharacteristically challenging quarter from an operating perspective and rising input costs, particularly purchased pulp, put some pressure on margins. Recent announcements of selling price increases are expected to address much of this challenge going forward.
"In addition, we remain very excited about the growth opportunities associated with the Concert acquisition. Although in the very early stages, our integration activities are proceeding on schedule and without interruptions."
