Second Quarter 2013 Highlights:
Sequential Profit Increase Driven by Favorable Raw Material Environment and Improved Fundamentals
- Favorable trends in Asia and improvement in the Americas complemented by stabilization in key end markets in Europe.
- Higher net spreads amidst favorable raw material trends.
- 2012 cost improvement initiatives providing positive impacts on results.
- Focused on economic leadership and leveraging growth in all segments.
Revenue Increases on Strength of Asia and Benefits from Growth Investments
- Net sales for the second quarter of 2013 were $291.5 million compared with $296.2 million for the second quarter of 2012 and $287.1 million for the first quarter of 2013.
- Net sales in Asia increased 16.4% compared with the prior year primarily driven by the healthcare market. Installation of new hygiene manufacturing line completed in May 2013.
- Net sales in Europe decreased 4.0% compared with the prior year as underlying demand stabilized in industrial markets, offset by reductions in the Hygiene market. Lower volumes and reduced selling prices in the Americas reduced segment net sales by 3.7%.
Profitability Up on Lower Raw Materials and Cost Improvement Initiatives
- Gross profit was $50.4 million during the second quarter of 2013 compared with $46.4 million in the prior year and $45.9 million in the first quarter of 2013.
- Improvement in profitability was primarily driven by higher net spreads as well as reduced labor costs from the positive benefits of 2012 cost reduction initiatives.
PGI's Chief Executive Officer, J. Joel Hackney Jr., stated, "The solid business fundamentals we have cited for some time were once again evident in the sequential improvement in revenue and profitability. Our strategy is to maintain economic leadership and leverage the growth in all segments, and I'm pleased with the execution and commitment demonstrated across our global platform.
"We have sustained momentum from favorable demand trends in Asia and stabilization in several end markets in the Americas and Europe, as well as the incremental contributions from our previous growth investments, amidst the challenges from raw material volatility and the competitive environment. As we accelerate the product growth strategies in each segment, we expect further leveraging of our previous cost improvement initiatives."
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