CHARLOTTE, N.C. (News release) -- Glatfelter Corporation, a leading global supplier of engineered materials, today announced that the Board of Directors has suspended the Company's quarterly cash dividend as part of its focused efforts to optimize the operational and financial results of the business.
Kevin M. Fogarty, Non-Executive Chair of Glatfelter's Board of Directors said, "This is a prudent step that will redirect capital back to the business at a critical juncture for the Company. With enhanced financial flexibility, we will be better positioned to make the changes and investments needed to drive improvements throughout the business while navigating the ongoing global geopolitical and economic challenges. The Board of Directors is confident the management team under Thomas Fahnemann's leadership, has the right focus and expertise to successfully improve Glatfelter's near-term profitability and drive long-term value for our shareholders."
Thomas Fahnemann, Chief Executive Officer of Glatfelter said, "The Board's disciplined approach to capital allocation extends across our entire business. Our management team is highly focused on accelerating the necessary pricing actions, operational improvements and cost savings initiated earlier this year. We are also active in identifying additional opportunities to drive efficiencies and synergies to further offset the ongoing impacts from unprecedented energy prices and raw material inflation. We remain committed to servicing our customers as we optimize our portfolio to further maximize our profitability."
The dividend suspension will free up approximately $25 million annually in cash flow. Glatfelter last issued a $0.14 per share cash dividend on outstanding common stock to eligible shareholders on August 1, 2022.
The Company advises shareholders that it expects to provide details on its strategic capital redeployment and profitability improvement initiatives in conjunction with its third quarter financial results on November 3, 2022.