Textile sector may show better earnings in H2

07 Sep '09

2 min read

The performance of China's domestic textile and garment industry declined during the first half-year of 2009. But textile and clothing exports have gradually warmed up, due to gradual recovery in international market economy and earnings trend of the textile industry may turn better in 2009.

In the first half of 2009, industry-wide revenues of listed textile and garment companies totaled 38.78 billion Yuan, down 3.23 percent year on year; operating profits registered 3.4 billion Yuan, down 14.34 percent year on year and eventual realization of earnings was 0.12 Yuan per share.

The U.S. economy and consumer spending in the first quarter showed initial signs of recovery, overseas economy being driven by the United States is expected to get out of the doldrums, therefore, China's textile and garment exports are expected to warm up in the second half and overall profitability trend of the industry will also improve.

China's exports of textile and apparel totaled US $16.37 billion in July, down 12.35 percent year on year, but up 17.42 percent from the previous month. Among them, value of textiles was $5.33 billion, down 13.37 percent y-o-y, but up 8.61 percent from the previous month; clothing exports amounted to $11.042 billion, down 11.86 percent y-o-y, but up 22.2 percent from the previous month.

Fibre2fashion News Desk - India