Fibertex generates revenue of DKK 390 mn in Q1
The Board of Directors and the Management Board of Aktieselskabet Schouw & Co. considered and approved the interim report for the period January 1 – March 31, 2010.
The interim report, which is unaudited and has not been reviewed by the company's auditors, is presented in accordance with IAS 34 “Interim financial reporting” as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies.
In our opinion, the interim report gives a true and fair view of the Group's assets and liabilities and financial position at March 31, 2010 and of the results of the Group's operations and cash flows for the period January 1 – March 31, 2010.
Furthermore, in our opinion the Management's report includes a fair review of the development and performance of the business and the financial position of the Group, the results for the period and of the Group's financial position in general and describes the principal risks and uncertainties that it faces.
Fibertex generated revenue of DKK 390.3 million in Q1 2010, compared with DKK 327.9 million in Q1 2009. The revenue improvement was driven by stronger business activity in both Fibertex Personal Care and Fibertex Indus-trial Nonwovens.
Q1 2010 EBIT was DKK 34.3 million as compared with DKK 39.8 million in Q1 2009. The fall can be explained by the very favourable developments Fibertex Personal Care experienced in raw materials prices in Q1 2009, which had a substantial effect on earnings. Profit before tax was DKK 26.1 million in Q1 2010 compared with DKK 32.3 million in Q1 2009, which was in line with expectations.
Relative to the end of the first quarter of 2009, Fibertex has lowered its net interest-bearing debt by DKK 67.5 million to DKK 740.9 million at March 31, 2010. Also during the first quarter of 2010, Fibertex paid dividends of DKK 30.0 million to Schouw & Co.
The overall working capital tie-up grew by DKK 10.1 million to DKK 306.0 million at March 31, 2010 from DKK 295.9 million at March 31, 2009. The increase was expected due to the rising level of activity.
Fibertex Industrial Nonwovens
Fibertex Industrial Nonwovens has thoroughly restruc-tured and modernised its production facilities in recent years, launching new and improved products in a bid to build a platform for satisfactory earnings in a competitive market. As a result of these efforts, the factories in Den-mark and the Czech Republic have opened new super-efficient production lines.
Going forward, Fibertex Industrial Nonwovens intends to lift its competitive strength further by adding a larger production line which will be upgraded and relocated from Denmark to the production platform in the Czech Repub-lic.
Following the decline in 2009 and the severe winter that impacted infrastructure construction in Europe in early 2010, demand in the industrial markets has gradually begun to recover. Demand is growing in all business seg-ments, but the severe price competition prevails.