Glatfelter explores strategic alternatives for the Specialty Papers Business Unit

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On the occasion of the 2017 results, the American Group’s Chairman and CEO Dante C. Parrini has announced :

“Our Board of Directors and management team regularly evaluate opportunities to enhance shareholder value and have decided to explore a range of potential strategic alternatives for Specialty Papers. Our strategic review process reflects a strong commitment to maximizing shareholder value by accelerating the growth potential for Composite Fibers and Advanced Airlaid Materials, and determining the best option for Specialty Papers.”
A possible outcome of the strategic review process may include, but is not limited to, the sale of the Specialty Papers business. At this time, the Company’s Board has not set a timetable for the completion of the process nor has it made any decisions related to any specific strategic alternatives. There can be no assurance that the review of strategic alternatives will result in a particular outcome. The Company does not intend to provide any updates unless or until it determines that further disclosure is appropriate or necessary. The Company has retained Credit Suisse as its financial advisor to assist in the review of strategic alternatives for the Specialty Papers business.
In 2017, Specialty Papers’ net sales decreased $14.1 million, or 6.9%, as its markets continued to be impacted by a supply-demand imbalance resulting in lower selling prices of $4.0 million. The division TO was 190.6 M$ representing 186.000 t of paper.
Specialty Papers’ operating income totaled $3.5 million in the fourth quarter of 2017, compared with $13.3 million the same period a year ago. Lower shipping volume and selling prices negatively impacted results by $5.8 million and raw material and energy inflation negatively impacted results by $2.7 million. Results also declined due to $1.3 million of higher depreciation expense, $1.1 million of higher freight costs and lower productivity and manufacturing efficiency related to a paper machine shutdown, somewhat offset by lower selling, general and administrative expenses.

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