Glatfelter Profit Climbs

Shares fall.
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Glatfelter

(GLT) - Get Report

said its third-quarter earnings rose 45.9% from the year-ago period, helped by strong performance in business segments.

The company earned $5.4 million, or 12 cents a share, in the quarter, compared with of $3.7 million, or 8 cents a share, a year ago. Adjusted for items, the company earned $10.6 million, or 23 cents a share, in the quarter. Analysts polled by Thomson First Call were expecting earnings of 23 cents a share.

Third-quarter revenue rose 87.8% from a year ago to $280.2 million as against analysts' expectation of $289.94 million.

"We are pleased with the results from our legacy operations, especially the Composite Fibers business unit which saw substantial volume improvements. Within the Specialty Paper business unit, our Chillicothe operation did not generate the level of earnings that we had expected. While we are disappointed in the performance of this facility, we are confident the Chillicothe acquisition will create meaningful long-term value for shareholders,'' the York, Pa.-based company said. ''As previously announced, our Lydney acquisition is in a Phase II review by the European Commission, and therefore, we have not progressed with our planned integration initiatives on this front."

The company expects the Chillicothe acquisition to be neutral to slightly accretive for full-year 2006, and 45 cents to 50 cents a share accretive in 2007. Shipping volumes are expected to be lower in the fourth quarter compared with the third quarter due to seasonality.

By segment, third-quarter revenue from specialty papers nearly doubled from a year ago to $204.8 million and revenue from composite fibers rose 62.9% to $75.4 million.

Shares of Glatfelter were trading down 18 cents, or 1.3%, at $14.10 Thursday.

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