GLT - Earnings call 3 2023

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Operator

Good day, and welcome to the Glatfelter's Q3 2023 Earnings Release Conference Call. Today's conference is being recorded.At this time, I'd like to turn the conference over to Ramesh Shettigar. Please go ahead, sir.

Ramesh Shettigar

Thank you, Lisa. Good morning and welcome to Glatfelter's 2023 Third Quarter Earnings Conference Call. Senior Chief Shettigar, Treasurer. Officer Ramesh is Vice Financial President, and This

and our the third standard Chief President Glatfelter our to reminders. Executive we results of On present Fahnemann, quarter call a I presentation, have is Thomas Officer myself.Before few begin and

well the of is During as in these release slides. to GAAP-based morning, results financial in adjusted this financial today's and non-GAAP call will use measures other our term measures. included earnings the investor we earnings as A reconciliation our

We today risks will that are and uncertainties. make forward-looking also statements subject to

Our only the XXXX materially website differ and available call of undertake we as turn our Form to and XX-K release our to speak SEC results from filed today them.I and these cause with on will obligation could now actual today's over no the forward-looking disclose statements. update Thomas. that factors to statements are These

Michael Fahnemann

to XXXX. call Quarter that the you, and Third results improved Conference Ramesh. second today's begin Glatfelter's to over quarter. for welcome Call by third pleased quarter everyone, Hello, our Thank sharing I'm

onetime team a rightsizing.Equally strategy highest X the quarters. actions with EBITDA as direction the strong the to for organizational quarter, EBITDA the through quarter. improved our past important, earnings margin trending positive and our in very issues that quarter previous continues recovery efficiencies enterprise in turnaround concerted which profile to in deliver improved benefits the sequential operational to reflecting and our results address level during of contributed achieving posted margin third we $XX.X took adjusted Overall, third quarter, occurred million Our a the this operational is

pressure reflects on downward from last our guidance, This geopolitical continue that the accelerated by control.These disciplined conditions our prevailing annual to such delivering facility, of on the segments broad volume important performed also anticipated growth Spunlace cost key ability losses sequential site's deliver to commercial mitigate allowed Oberschmitten, Fibers operation and outcomes drag well Airlaid And initiatives performance quite which posting of our improvements continue achieving EBITDA result [indiscernible] quarter the material and available to global inflation.For our these $XX dedicated minimize we the were would our business.While we business sale operational third and the improving we Composite Materials million. North havoc notably, cannot guidance lowering the change with market consumer that turnaround profitability overall, throughout Sontara stability, third and benefited time. the market believed continue that are impacts Russia-Ukraine and these created the Middle with beginning destocking overall East pricing and conditions and improve situation and conflicts, future.When experience plaguing unsettled issued we market insights customer confidence, energy the previously for quarter headwinds based at industry the anticipate gains, sequential the Carolina performance. previously future EBITDA ongoing negative been from completing team's including all overall with on reasons, most we our the resources raw Glatfelter's from difficult Our be by of The economy, pleased to the to the expanding increasing XXXX. as Asheville, a of have important our wreak labor foreseeable achievements, direct I of reorganization and us to

over turn time.I will improvements environment, materialize to will in improved in Despite to to and However, business call the originally remain than market Ramesh. capture slow the position our from this fundamentals ongoing we the that anticipated. our deliver to benefits business our been these an improvements has ability confident due now of

Ramesh Shettigar

feminine million quarter year, the earnings due by energy price/cost compared materials, from tabletop reductions. categories. approximately included $XX.X to last largely million. levels. in was net quarter million X% to faster the declines period basis cost lower primarily Slide volume. $X segment. for down EBITDA selective summary unfavorable the our Airlaid year, Adjusted in by million lower, On and higher lower higher price fluff Main inventory manage a sale levels primarily than actions, concessions to arrangements, Europe of was results was a and costs selling weaker in record were due EBITDA Thomas. third by weakness. pulp. manage adverse $X.X strategy material the of X substrates by prices competition high last was same Materials million market pace by market to million, were by This cost EBITDA a driven preserve and approximately spending. provides quarter freight during presentation inventory basis, driven and year, and driven versus results. pass-through production approximately from as quarter. X despite the onetime last gap, Oberschmitten of mid-August.Airlaid you, were approximately by higher prior raw cost by sequential same This maintenance the residual in reflecting compared at price period and was lower alternate was to to in energy improvement due and This $X year. to Spunlace was Selling and million.Volume from benefits unfavorable weakness mainly favorable adverse shipments a a Thank was third energy of cost production high quarter ongoing to to $X of the to lower items absence by continued turnaround prices investor prior mainly the nonfloating turnaround lower drivers of the hygiene by actions the EBITDA constant lower price the surcharges in the Materials $X.X on $X due customers second was operations million a costs gap price the year-over-year, surcharge favorable driven to Europe Revenues versus by higher same and the and shows destocking, cost quarter driven lower $X of shipments declined shipments mainly gap.Slide Fibers selling Operations approximately raw and gap X% currency inventory versus price Composite or summary

$X.X exchange The on shipments XX% down of lower results implemented $X.X and impacted basis hedging positively Fibers from Total selling currency Foreign a due related the were due earnings larger the revenues customers. constant volume lower $XXX,XXX of of shows quarter by decline with floating to segment. currency the beverage million and food Composite X euro.Slide year-over-year and strengthening third to prices summary for by prices a and the initiating asset subsequent and and of product driven was the combination softness composite XX% laminates and divestiture the us of food inventory categories.Ongoing beverage, negatively in metallized impacted weakness by of of impacted from in wind-down customers. income our Oberschmitten higher-margin the larger unfavorable and destocking market from some declines combined products The lower also shipments mix million. with

lower cost to cost-out were year-over-year reversing addition, by the favorable versus negative last and $XXX,XXX, lower $X.X volume by million by positive million In production lower to productivity. earnings raw and benefits note, year, $X.X a results significantly actions, other manage partially and from offset the was quarter the freight prices by On gap due negative inventory. materials, price trend.Operations were key improved Oberschmitten energy driven but for same

of by outsourced on decline a shows this summary $X.X general Spunlace drivers customer headwinds, market customers by up and XX% million costs $X impacted and by $X.X driven and shows a traded we $XXX,XXX, American this supplier third last operations material, for results seconds weakness million, other France was million demand constant Revenues approximately financial hedging all quarter, and this to the imports by gains same were and segment. a converter this related that bolstered through from year. currency sold despite unprofitable of intense Raw was eliminating margins. in inflation North our Operations, prices year.Slide profitability. these write-down Corporate to site our experienced unprofitable production XX% side. at to wipe the exchange material higher stable last unfavorable were constraints price/cost versus faulty efficiencies, raw Turkey of And market were the focus the Foreign materials XXXX counteract all lower lower were and costs rightsized from categories $X.X corporate volume results XXXX. head further the and chose in on into across Europe primarily in we seen selling other material count million, X $X.X to on to customer workforce exit.To down quarter we XX% basis, cost had reducing of cheaper by items. million.The primary and were FX favorable portfolio year, site relationships.Slide China, and driven Soultz, the manufacturing of customer reductions provisions provided exiting from rationalization for leading The site's energy favorable current period into accounts at and XXXX. by from down raw slightly negatively earlier where In by Sontara's X coming pass-through items X a hygiene improve the gap other key shipments

from costs impact balance Cash capital was material with interest Other compared elevated $XX and higher to the $X Working capital cash driven our for our quarter carrier management. cash by and $XX a the supplier count and declines was metrics. flow X our same costs. million our are million approximately the cash unfavorable working to claim insurance of and reduction In shows free and last in line last adjusted raw costs were XXXX, million services working actions actively We by items higher actions.Slide recover interest shows period head with XX prepayments approximately XXXX, period liquidity cash by to the same have turnaround approximately lower and professional flow year. the usage was offset was cash the price financial their driven negative them quarter third by versus related benefits sheet lower year.Slide summary. some by with by in filed implementing we This same flow partially rates.

guidance leverage credit for under XX. cash our million liquidity the at end.Slide flow available we is agreement of of a as ratio, September $XXX and approximately as bank EBITDA X.Xx calculated XXXX. had And Our was XX summary quarter of

While present our was recovery initiatives. certainly our weakness strong potential full a challenges from the ongoing the QX, to QX realizing EBITDA turnaround of market

as to volatility such and geopolitical continue coupled Ukraine Russia, into East. and the with input this Middle expect We costs energy, driven the by QX, in conflicts

we're cash $XX between be million.Regarding year million cash full approximately EBITDA flow result, following: our we of expenditures $XX items, lowering and a by interest to expect capital $XX As guidance the $XX million; million.

European This with guidance.This be combined. expected than is usage $XX now is $XX cash $X.X expect guidance We will and utilities. than And million unfavorable million prior turnaround from related prepared remarks. to taxes higher lower approximately about costs concludes by and million my driven payment $XX prior approximately are I to capital Thomas. the cash back of turn call million terms our working cash or our

Michael Fahnemann

Thank you, Ramesh.

our during XXXX. important are referenced are I remainder several for that on us and deliver the areas quarter As for call, into previous of extremely XXXX to second there well

the of Industries and facility overall delivering and business navigating very our Rockline's core adjustments who make us to expectations Rockline challenging evaluate while Year the customers continue of the Glatfelter's standards further to I customers' recognized shares and headwinds. was Asheville Our prestigious management our economic goals.Recently, and appropriate as sustainability ongoing our Supplier by designation was for distinguish The high performance cost high values. carefully the us a team partner on to awarded remain the product serve

Innovation conveying actions bio-based an our by for a investing related these now serve includes throughout of positioning many refine which culture least, Hygienic call will balancing When our point this versus at with In will for future.I well years turnover is further all way markets materials.And the strategy we capture last instilling our XXXX of to come. productive assets. addition, price efficiencies finalist advance accountability.We and continuous complement business, structure capture served more we for the very will absorbent theme, to nominated a I'm to will transformation the in optimize along certainly while operational as as we to new our hygiene product And has will begin questions. combined, sense XXXX.While derived us our they the Also, ongoing as resources GlatPure a are optimize all full from not volume. efforts range, efforts of ongoing of to portfolio the have but Award we at of will product organizational urgency to components been a the aimed well doing improve which open confident for renewable we in power company not the to program as some us the committed continue

Operator

[Operator Josh call comes Wool from Instructions] with Our first Capital. Carlson

Josh Wool

top and margin. has your Starting on and and start and line then but cash of players destocking particularly to move obviously, taken questions guide. few have then with customers toll a sequentially. some weakened And to competitors, of As report your Spunlace in I your sequential usual, with able volumes, these improvement.However, a were Composite the the I'll EBITDA and Fibers volume some down flow volumes, on

shut how the much unprofitable of more of losing drove worse And destocking color that share getting So on decline? walking what other away substrates? then particularly driven Fibers, much in how And Oberschmitten? was maybe or some a you little by Composite was of to or from business the could these give bit

Michael Fahnemann

just Yes, segments different go Okay. through let Josh. every different, behaving me little segment because bit maybe a the is

So we experienced destocking, still it's but ongoing we were and the the third about with what we are let's experiencing done are in talk hoping in quarter. that, -- which that what maybe

Hygiene So plus market also definitely, segment some see still overall, the destocking. destocking.So Feminine different we the in weakness on path the of segments, is

So one area see we this, definitely we didn't that's expect. where which

And customers food these quarter.Moving been and it a is this relatively have we little is we me QX for quarter. stable, one a this. relatively happened in there's services. actually restaurant seeing I demand let it then talk our is other has lot activities we still The Food can and here. third & a see, a where the still business, at weak. Normally, destocking business you bit. are happening tabletop, there's relatively are our have certain they all subsegments also businesses inventories the also And of still mean all the of wipes but about some and And in outside destocking strong on, what Beverage

are also overall think I destocking we areas going I of X there on. consumption move to with stable, growing we what that's is may single-serve a even and this are mainly where have bit, seeing And from going are on things start -- is is filter coffee, issue. maybe we Europe, although normal kind are coffee and X still there.If that little seeing And a for we a true participating coffee. price

are overall, still, there, we So overall see although say, some weakness.And would and stable, a I coming tea, and is customers underlying inventory lot sitting XXXX XXXX. on relatively still of demand from

of I one maybe So area that's of critical is say, impacted in the the more look -- probably cleaning if by still segment and the -- more would if area, in that I I look which impacted, kind is destocking. at the Spunlace,

Josh Wool

[indiscernible] your it some a Okay. and That's I America. to competitors America, morning little versus and And you of called North and seems one more Airlaid. consumer regions, in Europe weakness the compare more bit North versus intensity Europe about things your in talked in And competitive like maybe this press of out guess, release same then helpful. the seeing

So how or kind would a time? a And North Europe compare America? is secular versus moment you of trend in it just

Michael Fahnemann

the overall U.S. what consumers of see issues economy that are is in to seeing Europe No, a And couple weaker are I here, one, also Josh. the we think relatively compared Number there's hesitant. that is we

markets it. trends top also seeing in we very, areas, negatively European we the environment say, market.On we're substrates. weak also macroeconomic cheaper impacting Europe, from inexpensive Turkey, have still definitely but imports of some Europe, than this, to so seeing substitute And Asia, in I much we healthier relatively that are products see trying also U.S. are in in some would China, of which coming And are from certain the with

U.S. coming So than Europe agree, the I challenging is is would all that up, more but much totally

Josh Wool

on one then just Okay. And last the the volumes.

QX of -- XXXX, I plan expected you you're growth. a didn't a recovery? read it from materialize. else into know I and are mean, volume should it shifting as plan conservative for like improvement customers you you algorithm do stand some growth the in of kind data And price what have looking be XXXX? thinking But what points? your try their As I tangible some seems what given about can volume visibility to we we say what at more about we to, guess, I or taking for

Michael Fahnemann

QX the would there's at kind have volume do a the honest, to lot a visibility QX standpoint, thought out, you of we didn't reached that that. be right us Again, pointed of end bottom quite of Yes. and from now. not we Like help rightfully that

for it's things internally and this and is difficult.But continuous in really is turnaround So doing but us and our transformation months if our we right what not XX I I all look process. market, our now next ahead -- this strategy the at are also

as I is So have far concerned, reached we is the as far bottom Glatfelter as volume concerned. as say, would

building So we up. are

the I at now. it's at the I right are overall, have faster. our come then think for which are our we big earlier, on is now. what if year.But markets kind there. are next just budget, planning the positioned we we if to coming we capture volume look It's the will coming are And market process from back growth of well market. the based at But right is question It not right in value now, looking

which are year. market can improvements. next volume see influence, are not But betting on growth We we for we any we actions with taking,

Josh Wool

issue overall absolute on margins. dollars on top That's guys just with But made would flattish profitability. I to then basis. year-over-year moving are I you depressed the progress a the guess the helpful. is have And line, agree

volume progress said, your question own you assumption, just what is much my improvement your coming you more just and EBITDA not growth is, can make a how will in market on from on just based getting if how this And of a be back volumes reach type that environment? on talked predicated we've margin much historical of profitability to? in about turnaround of that level to really So or premised kind

Michael Fahnemann

look detail, far double-digits. margin the X the a turnaround going if softer third businesses, in we the look also EBITDA we main if without in concerned I into at mean, depending we too where business Fibers, of Again, are Airlaid, our and I said little is as you that as Yes. marketplace. Composite we the strategy of introduced XX% remember beginning much but when on but quarter, to you might at -- between already needs And the in the said we be are XX% at

still where X made progress. still quarters, there's last X, -- still the you But a So think But lot hygiene that's to Fibers you to before, lot so biggest difficult to I probably we now wipes is have gap Sontara. if a a and and environment, if are want QX Composite different there at promising.Now in segments. get again, there Overall, to I we I have at in look Airlaid, you and than as if at very X Spunlace, really EBITDA coming positioned we market if year-over-year into kind a -- Spunlace, improvement, the the well we at have segments, but in X%, have of way And look very if but we we progress look and look at we the is was of Airlaid Spunlace margin there go. look X% have, I it. the which look be to of will with making

Josh Wool

got prices, just a softwood Composite in seems then on It from Okay. nice the I one Those like and down And on QX. you Fibers' prices improvement pulp came some lag. which are profitability. fluff I also in know decline question have

the based at of should capacity to see on side? bit been all have And little cost some closures a So you fluff we the expect declines? impacted by in pulp QX those more North and price then guys in America softwood on

Michael Fahnemann

that of the in would raw mean, for QX. thumb, X later, just some in cases, I still and was But we I let's everything bit as buying in consuming I a are normally, mean, actually now months of say kind bought a are materials them. you've expecting rule are little -- QX. of we we In earlier, it's QX seen but QX and

it effect, of still kind fluff, like down as were light have came I lot a effect for is of in So is the a much as very, concerned.Now is some which market have as hoping there there. it for in should effects down we be there. QX. would bottomed things, pulp outlook out now say, is is longer people Overall, should come areas see honest. some difficult, But material say other overall, very some of kind be down What get seen far that pricing lag unfortunately, far important as didn't us, it And to and to we raw positive took quite we weak.

question we impacting us. other Right is your now issues. don't any Now have supply

XXX,XXX, XXX,XXX So all if think might about fine. is capacity in the overall, that an market, impact. this less you tons have But

Ramesh Shettigar

make margin input and also coming want QX. of Josh, some a for to on the in we that the profile. costs there sustained we improve us I of this to a that cost basically, mean firm long gap key to give sure down side in going start for also these area And way will help in be before trying Yes, we focus can evidence key as price. to is to as price up is on non-floating hang

Josh Wool

million of have on year, flow pretty last your out guide EBITDA then range midpoint guide. implies it I question guide, and of the take left. have QX. just cash the for remove a quarter I one first you or And And one Okay. one if guess, about I $XX about wide the question

range? I'm whether end land I drive higher factors the at of that that what wondering the key will guess So are or the we end lower

Ramesh Shettigar

say, would look, previously Josh, between we million. and I $XXX $XXX guided Yes.

million, we're a a right? roughly essentially of implies all $XX take get to million, million you that if EBITDA for even $XX calling $XX the $XXX EBITDA midpoint And to QX. million there year, for So

soft. market to going QX So to continues remain There QX. sequential yes, is growth the to be some

also end some having rebates quarter. fourth up that We come in typically onetime the

guidance, it's initiatives fourth quarter a the done much for data the you that range of that we the to now.And as have on the and in hitting we're November that our on from not quarter, coming if in continued from So watch turnaround for we've and influence fourth wide October, here we're are at revised how because pretty the feeling given a early well. the anticipating looking optimistic will, visibility of ability we October being as keep market close able the to that

is items that that demonstrated have So the truly results it.We're do clearly, good quarter, with think the about -- onetime behind onetime Oberschmitten in we glad the these that. QX think we We're have had the came are items. quarter's us. lot feel glad where would were for to fourth of some market third I pretty we quarter not second a I And but where liked,

it's come lid back matter doing span and volume that ready of making control, be leverage very we potential a tight strong so does very, of And a operating realize our be for when to can within really able on a costs here. sure to with keep full whatever we

Josh Wool

working today, level that's level? you're a utilities And some this spending, the the level of more year? high free working I'm to is a next because the changing the so of -- for high guys material next would contours as pretty source obviously vis-a-vis that items flow any guess next about My year's still cash terms payment being onetime with general changing, are sense. flow on cash year it guess, last just prices normalized think funds be just color it Just and about helpful. be payable not guide cash I I you and Makes dealt for flow is, question a is right. a next capital year. think asking of All I capital like year you're at terms Is have turnaround we could earnings-driven? in can that of raw cost But

Ramesh Shettigar

Josh. Absolutely,

First that there It's primarily by next have turnaround we've that CEO items transition of talked to that. hit all, will and But this you're actions year's cash earnings. the us several related about. that the flow driven It's be cost cash year. cost onetime right the are

costs continue You're counteract with also a from an earnings, pretty expect on would to improvement will dues.So about right And side, as items. to payable of then driven working some XXXX, capital cash overall, done the capital by that capital of the tight these good much possible trying we by come if collection and of yes, management challenges but inventory of the job driven as working past we've burn of onetime in improve. then going use -- XXXX input do to down, that also really

flow that in generate expected there we And itself. which also this are are So lot to we year-over-year, forward for repeat remain to onetime were nature growth year not looking optimistic relative are will things believe about a our earnings we to cash XXXX of cash us. usage in also because that more

Operator

question of Spitz And our from with comes next Bank America. Roger

Roger Spitz

hygiene comment so down than on different after more were Can are about they difference sort markets, different wipes Airlaid uses, talk and hygiene? of comment X? Spunlace the and wipes Maybe why much going between you the

Michael Fahnemann

of qualities Yes. there as are and a we markets the highly participate Airlaid are also think a is of what on position is want market because path profitable lot our decision in competition -- what you don't volumes, And it we in to business. product. a good sides also And that price. always there, are the we concerned, is I they the this would competitive is far to I we participate certain both from it's mean market And totally as kind higher relatively Soultz I you product. and right is have environment. that versus lower-end now Asia. before. is competition here when relating a is about see Spunlace Spunlace, different Ashville And it's is that in Airlaid.Now of you businesses in question this say, there's certain but volume And was and deliberately I our we and still, Spunlace what and also deliberately didn't qualitative talked yes, -- the again, But see I weren't

Ramesh Shettigar

So yes, Roger, book us. I the terms and business and look take customer also to the of been it at we it a my Soultz, taking to production portfolio, walk not in was to site very you a line. know mentioned margin bottom the that but because particularly which that went in profile what the just in referring cost-uncompetitive then volume of had has Thomas to fair with a workers, chose where number for and volume contributing is of addressed is and our We remarks, that out from at customer people is away looked

also to Spunlace this that about comparison So is between Airlaid. you're talking and adding

Roger Spitz

Asian is and Got yours, the as products -- meaning just is it. to And be fiber clear, competition also base wipes

Michael Fahnemann

Spunlace. Yes, Spunlace.

Roger Spitz

-- not with correct? you're competing wipes, propylene-based

Michael Fahnemann

antidumping thinking claim approached capacity, Spunlace, can than that's Europe the Correct. association we and product a would start Correct. I mention the we are if non-wovens from comparable But that also much about that. no, whether there, and more again, Asia, were also Spunlace now and And No, it's participate we competitive say in U.S. Turkey. in that Europe, we the and Spunlace

coming sustainable. in doesn't make product this level So sense. more It's This raw there's of said is the prices. we material any not where at

considering organization, association antidumping an in industry through now, are are the so case. right producers the And Europe the

Roger Spitz

capital, then it's Got flow got then kind costs, if I else change. is cost everything other else, right, restructuring, things sort CEO EBITDA, severance you to it. as statement cash is interest, and like by I OCF is operating you've of what of then mean that and the your question cash identified you, look on And for of what flow what have working and refer and everything taxes second

So that for in guidance first your was don't what and a half I outflow. don't what the QX? you for yet, do so in number was year? We of have 'XX, be full XX-Q of it $XX other a have And million know that would change sort

Ramesh Shettigar

Yes.

$X about the third million, say $X fourth would Roger. for then quarter, And we're also quarter I was So expecting the about million. for it

seeing And net statement, get go to in QX column Oberschmitten we this get call cash. first to cash page, that our in the negative cash costs missing all we've like you're when use see what it, have free that like together, the flow our are cash I through refinancing add at free trying year-to-date cash So the incurred flow the that Q on and from, you cost you're flow our not we adjusted, cash flow, so adjustments use pieces of the you of in had, this $XX you the another are quarter that is think to million on.So $XX XXXX, things the down things with I which at are look before the and will elements to that cash if which of right? that make million that's

year, full it, fourth So and is quarter we year-to-date, that going million call to then $XX And it, going the in And we are about, fourth million probably improve the negative we're quarter. to call by of a capital. so. our into for from chunk be that based $XX or working coming at good -- on expect guidance around,

elements cash So all the and what we helpful, of Roger? cash flow those sources are the to after Is cash get to net the burn. get uses as define that that to really

Roger Spitz

I can this a guess I covering maybe that? and XX%. prior you -- And then Absolutely. looking little then little up down a about was while Absolutely. for. color any That's talked about Is there remarks provide XX% covering both metallized the were you on in exactly [indiscernible] up bit surprising. what additional products

Michael Fahnemann

people positive [indiscernible] were hard and trying and in with Ukraine. of side, okay, were you there we were really also this pretty so went -- rest guys to very And was Russia one always additional other Ukraine Europe, business material we we the able and telling material Europe really from into Europe. in really were war that of we a lot regain able, is Russia-Ukraine Sure. volume is because hit this on are coming some where to then to -- were capture because and the trade alternative we Again, very the in find this

really still honest. say to because, news.But continuing for We're is can quite I'm is good I Is you sure we that be this is, how this. this this one the how explain that's starting something now side, on So not where volume. future mean, sustainable the

it And so looks promising. -- but yes,

Let me have very work And in able news, put one. on not that's alternative to find But hard really we But least at volume. were to we customers we an that business -- again, were it's so something was it team like QX, that and that. where increase the positive yes. established now said where Europe we we and in able to the --

And sorry...

Ramesh Shettigar

Metallized.

Michael Fahnemann

a The down for is market alternatives, this really not we and share. market And it's losing this. alternatives that cheaper and also are people business, looking all are Metallized problem. overall is

right now expect recover In they this was this to the which they this, So are also volume off. I and the But issue certain is that's off. early think year. market mean talking our segments, really customers, to will something didn't we extreme an fall because next really

Ramesh Shettigar

is... Labels in general

Michael Fahnemann

Labels down in is time. general big

Roger Spitz

products? are metallized the I guess... alternatives typical Okay. to What

Michael Fahnemann

have what is you Now also direct you can -- can print can plastics. do And you

Ramesh Shettigar

On to the glass.

Michael Fahnemann

on the glass. -- to

seeing a there's higher-end to mainly that do cheap especially alternatives, pressure metallized you they're different the find And also alternatives. of to couple how that can the seeing are they're we in cost due So that ways Europe trying labels that.

Operator

question our Instructions] with next And from [ Jennings Gordon [Operator ] Angelo ]. Mike comes [

Unknown Analyst

the disclosure far. all Appreciate so

'XX? energy kind year click for and talk downside associated into about balance moment about I both risks you're one double Can thinking the upside and a sort into. question of have how of we Just of and this that with wanted through to the

Ramesh Shettigar

to, East though top and would few Yes. storage Germany pick issues high conditions Europe, us the pipeline Energy last the like seen related these again, partly volatility healthy for of very we're even countries Middle conflict, at I hearing in to here with that we've supply in weeks, related about. in levels question, levels given are very, certainly is partly say, the Mike. mind up that Great

is first the we're we a hedge probably standpoint, derivative going the table. our quarter, watch in continue see spikes were can markets quarter this of in we some where operate to that fourth relatively continuing opportunistically that impact is But well.But U.K., think continue XXXX, France, we make layered we the the we'll But for something it's as already electricity. something And I to off to well-hedged. into Germany. which we're hedges spot in, and market exposure of related from and the we've taking to gas but will watching for sure we're

situation right what cost for from doing input certainly So a but an us. we're now, volatile than perspective no different

Operator

And are it questions no or further closing for any to I'll remarks. there Thomas in hand queue. back additional

Michael Fahnemann

quarter full And Thank support you your for ongoing we you. report Yes. very talk again when really much. you Thank for the of you your and fourth XXXX. Thank to then appreciate Glatfelter. we'll we and time year our

Ramesh Shettigar

you. Thank

Operator

this Release you Call. for And concludes participation. your Conference Glatfelter's today's Thank QX Earnings XXXX

may You now disconnect.

Magnera (MAGN) 2 Nov 232023 Q3 Earnings call transcript