Home / Knowledge / News / Textiles / PGI continues to experience stability in hygiene & medical markets
PGI continues to experience stability in hygiene & medical markets
17
Aug '09
Polymer Group Inc announced preliminary summary results of operations for the second quarter and six-months ended July 4, 2009. Additionally, the company announced it is unable to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ended July 4, 2009 primarily due to the additional time and effort necessary to finalize the company's accounting for income taxes, to ensure that foreign currency effects of certain intercompany loans are properly accounted for and to reconcile intercompany account balances.

PGI's chief executive officer, Veronica (Ronee) Hagen, stated, "The core operations of PGI continued to show strength during the quarter, even as we address the unexpected delays in filing our results. We continued to experience stability in our global hygiene and medical markets and have achieved a successful start-up of our new capacity in Mexico to serve North America. While industrial volumes remained weak, we are taking necessary steps to align our cost structure with demand levels and to ensure that we maintain a sustainable long-term position in targeted niche markets."

During the quarter, the company concluded that it was probable within a twelve month time period that it would sell the operations associated with its FabPro Oriented Polymers, LLC ("FabPro") subsidiary. However, at this time, no definitive agreement has been entered into associated with FabPro. In accordance with requirements of SFAS No. 144 "Accounting for Impairment and Disposal of Long-Lived Assets", the FabPro business has been classified as held for sale. FabPro income was $2.0 million for the second quarter of 2009 compared to $0.8 million for the second quarter of 2008. For the first six months of 2009, FabPro income was $4.2 million compared to $0.7 million for the same period the prior year.

Net sales were $206.0 million for the three months ended July 4, 2009, a decrease of $64.7 million from the comparable period of fiscal 2008 net sales of $270.7 million. The decline in sales was primarily driven by lower volumes in the industrial segment as a result of the recessionary environment, and by lower overall selling prices to reflect lower raw material costs. Global hygiene and medical spunmelt volumes remained relatively stable and supported solid results in the U.S., Latin America and Asia. Additionally, foreign currency translation rates impacted sales by approximately $12.6 million as most currencies weakened against the U.S. dollar. The declines were offset somewhat by improvements in sales product mix, primarily in Asia, reflecting an increase in medical product volumes. Similar overall trends drove net sales for the first six months of 2009 of $416.0 million compared to $528.3 million for the first six months of 2008.

Gross profit for the second quarter of 2009 of $42.6 million was relatively flat compared to the second quarter of 2008 gross profit of $43.9 million. As a percent of sales, the gross profit margin for the second quarter was 20.7% compared to 16.2% for the same period the prior year, reflecting an improved spread of sales prices to raw materials that offset lower sales volumes. Raw material costs during the quarter were reduced by $30.9 million while the combination of price and mix changes declined only $19.2 million. For the year-to-date period, gross profit was $92.0 million, representing a gross margin of 22.1%, compared to $85.8 million and 16.2% for the first six months of 2008. The improvement in gross profit and, more significantly, gross profit margin, for the first six months was primarily due to significant reductions in raw material costs experienced during the fourth quarter of 2008 that remained at low levels during the first quarter of 2009. Generally, the Company's sales prices lag changes in raw material cost changes by approximately one quarter. As raw material costs began to increase during the first quarter and continued to increase into the second quarter, gross profit was impacted but continued to be at higher levels than the prior year period.


Must ReadView All

UK retail firms urge Hammond to ease business rates burden

Textiles | On 20th Nov 2017

UK retail firms urge Hammond to ease business rates burden

Top British retail company CEOs have urged UK finance minister...

L-R: Surya Ajay Agarwal (Director - Donear), Vikram Mahaldar (MD - OCM) & Rahul Rajendra Agarwal (Director - Donear)

Textiles | On 20th Nov 2017

Promoters of Donear Group acquire OCM Woolen Mills

The promoters of Mumbai-based Donear Group have announced the...

Courtesy: Cornell

Textiles | On 20th Nov 2017

Cornell’s tech allows customisation of woven fabrics

Cornell Professor Steve Marschner and Rhode Island School of Design...

Interviews View All

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

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

November 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
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

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
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

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
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

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
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


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