Interviews
News Flash
Polymer group sales climb higher
08 May '08
4 min read
Operating income for the first quarter of 2008 was $12.1 million, compared to an operating loss of $17.8 million in the fourth quarter of 2007 and operating income of $11.7 million in the first quarter of the prior year. Operating income during the quarter included $1.4 million of special charges primarily associated with plant consolidation initiatives in Europe.
Special charges were $31.5 million in the fourth quarter of 2007 and were $6.4 million in the first quarter of 2007. Additionally, the company recognized $1.8 million of noncash compensation costs during the quarter compared to $0.7 million in first quarter of 2007.
The company continued to successfully manage the balance sheet during the quarter. Total debt levels were reduced by $14.0 million during the quarter to $412.9 million. The company was in compliance with its senior debt covenant ratios at the end of the quarter.
Additionally, working capital, defined as accounts receivable plus inventories less accounts payable and accrued liabilities, was 11.9% of annualized sales at the end of the quarter compared to 13.6% for the first quarter of 2007 and 12.2% in the fourth quarter of 2007.
Net income for the quarter was $1.4 million, or $0.07 per fully diluted share, compared to $0.3 million, or $0.01 per fully diluted share, for the same period the prior year.
PGI's chief executive officer, Veronica (Ronee) Hagen, stated, "While our results for the first quarter were in line with our expectations and prior indications, I am very pleased with our success in improving cash flow and reducing our debt levels. More importantly, we made progress implementing initiatives that will drive profit improvement throughout the year and into 2009. We expect this improvement to begin in the second quarter and continue into the second half of the year.
"The improvement will be supported by our new spunbond line in Argentina and the Spinlace line in the U.S., continued growth in the Asia medical business, and implementing initiatives to better match the way we buy and sell products. Additionally, we are continuing to invest for future growth with the initiation of construction on our previously announced barrier spunmelt capacity expansion in Mexico. This line is targeted to serve the hygiene and medical markets in the U.S. as well as in Mexico and is projected to begin commercial production by mid-year 2009," she said.
Hagen added, "PGI has set its sights on market leadership by leveraging our core strengths of innovation, operational excellence, customer satisfaction and global capabilities. We have initiated global marketing efforts to refresh and improve our brand image and position in the market. This includes the development of a new logo that represents the brand character and provides a framework for how we interact in the marketplace."
Special charges were $31.5 million in the fourth quarter of 2007 and were $6.4 million in the first quarter of 2007. Additionally, the company recognized $1.8 million of noncash compensation costs during the quarter compared to $0.7 million in first quarter of 2007.
The company continued to successfully manage the balance sheet during the quarter. Total debt levels were reduced by $14.0 million during the quarter to $412.9 million. The company was in compliance with its senior debt covenant ratios at the end of the quarter.
Additionally, working capital, defined as accounts receivable plus inventories less accounts payable and accrued liabilities, was 11.9% of annualized sales at the end of the quarter compared to 13.6% for the first quarter of 2007 and 12.2% in the fourth quarter of 2007.
Net income for the quarter was $1.4 million, or $0.07 per fully diluted share, compared to $0.3 million, or $0.01 per fully diluted share, for the same period the prior year.
PGI's chief executive officer, Veronica (Ronee) Hagen, stated, "While our results for the first quarter were in line with our expectations and prior indications, I am very pleased with our success in improving cash flow and reducing our debt levels. More importantly, we made progress implementing initiatives that will drive profit improvement throughout the year and into 2009. We expect this improvement to begin in the second quarter and continue into the second half of the year.
"The improvement will be supported by our new spunbond line in Argentina and the Spinlace line in the U.S., continued growth in the Asia medical business, and implementing initiatives to better match the way we buy and sell products. Additionally, we are continuing to invest for future growth with the initiation of construction on our previously announced barrier spunmelt capacity expansion in Mexico. This line is targeted to serve the hygiene and medical markets in the U.S. as well as in Mexico and is projected to begin commercial production by mid-year 2009," she said.
Hagen added, "PGI has set its sights on market leadership by leveraging our core strengths of innovation, operational excellence, customer satisfaction and global capabilities. We have initiated global marketing efforts to refresh and improve our brand image and position in the market. This includes the development of a new logo that represents the brand character and provides a framework for how we interact in the marketplace."
Polymer Group Inc
Popular News
Leave your Comments
Editor’s Pick
Kimberly Morgan and Rik Veltman
K3 Business Technology Group PLC
Sunil Kharbanda
Trezix Software Pvt Ltd
Susanne Guldager
Label - La Femme Rousse
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
