Home / Knowledge / News / Textiles / PGI nonwovens business performance strong in Q2
PGI nonwovens business performance strong in Q2
07
Aug '08
Polymer Group Inc reported results from operations for the second quarter and six-month periods ended June 28, 2008.

Net sales for the second quarter of 2008 were $290.9 million, up $19.9 million or 7.3% compared to $271.0 million in the second quarter of 2007. Sales increased primarily as a result of steps the company has continued to take to mitigate the impact of rising raw material costs through higher selling prices.

Price increases and mix improvements contributed $19.5 million to higher sales compared to the second quarter of 2007. Total sales volumes on a comparable basis were down 3.4% compared to the second quarter of 2007, primarily due to lower volumes from exited facilities in the U.S. and Europe in the second half of 2007.

Underlying volumes in the U.S. were solid as new industrial programs continued to come on line and hygiene demand remained strong.

Additionally, volumes were higher in Latin America as the new line in Argentina ramped up during the quarter, and in Asia as the company's new facility in Suzhou continued to improve compared to the prior year, along with higher hygiene volumes from the specialty chemical bond line at its Foshan, China location.

Changes in foreign currency exchange rates contributed $9.6 million to sales growth during the quarter compared to the same quarter of the prior year.

Gross profit increased to $45.9 million for the second quarter, an increase of $3.0 million or 6.9% over the first quarter of 2008 and 3.6% over the prior year comparable period.

Raw material costs, specifically, polypropylene, increased significantly during the quarter. These cost increases were greater than the increase in selling prices that the company was able to achieve during the same period. As such, profit levels were negatively impacted.

The improvement in gross profit was driven primarily by improvements in product mix and lower manufacturing costs in the Nonwovens segment, offset by higher raw material costs in excess of selling price increases, start-up costs associated with capacity installations and lower volumes from consolidated operations. Additionally, depreciation expense was lower in the second quarter of 2008 compared to the second quarter of 2007.

Operating income for the second quarter of 2008 was $14.4 million compared to $12.9 million in the second quarter of 2007 and $12.1 million in the first quarter of 2008. Included in operating income were special charges of $1.4 million in the second quarter of 2008 primarily associated with European consolidation activities.

Special charges amounted to $3.5 million in the second quarter of 2007 and $1.4 million in the first quarter of 2008.

Selling, general and administrative (SG&A) expenses were higher compared to the second quarter of 2007 primarily as the result of foreign currency exchange rates and separation costs associated with certain management positions, including the company's former chief financial officer.

Non-cash stock compensation expense represented $0.4 million in the most recent quarter, $1.8 million in the first quarter of 2008 and $0.9 million in the second quarter of 2007.

Polymer Group reported net income for the second quarter of $2.4 million compared to $1.2 million in the second quarter of 2007.

For the six months ended June 28, 2008, sales were $564.6 million, up $26.6 million, or 4.9%, from the same period in 2007.

Increases in selling prices attained to mitigate the impact of raw material cost increases was the largest contributor, accompanied by higher volumes in Latin America and Asia and favorable foreign currency translations.


Must ReadView All

Textiles minister Smriti Irani lighting the lamp to inaugurate the 6th edition of the International Apparel and Textile Fair ‘VASTRA 2017’, in Jaipur. Courtesy: PIB

Textiles | On 22nd Sep 2017

Placement rate in textiles sector is 70%: Indian minister

The recent high growth of foreign direct investment (FDI) in the...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Textiles | On 22nd Sep 2017

Messe Frankfurt acquires Source Africa, ATF textile shows

Messe Frankfurt, one of the world´s leading trade show organisers,...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search