News Flash

Fibertex generates revenue of DKK 390 mn in Q1

06 May '10

4 min read

The market position will be expanded and strengthened in areas of business growth and geographical growth mar-kets. In early 2010, Fibertex Industrial Nonwovens estab-lished a factory in South Africa in cooperation with local business partners and IFU, the Industrialisation Fund for Developing Countries, for the purpose of manufacturing and selling needlepunch products, mainly geotextiles, and also to sell other products to South Africa's growing auto-motive industry.

Fibertex Personal Care
Following the strong revenue performance in H2 2009, Fibertex Personal Care expects to sell its entire production from both Denmark and Malaysia in 2010, including from the expanded capacity currently being added through a new spunbond beam on one of the production lines in Malaysia, which is expected to be brought into use at the end of June 2010.

Due to the constantly growing demand from Asia, Fibertex Personal Care has resolved to add a whole new production line at the factory in Malaysia. The move will increase capacity in Malaysia by 60%. The new line represents an investment of approximately DKK 275 million and is ex-pected to become operational in H2 2011.

Fibertex Personal Care is very dedicated to product devel-opment, and the new line will enable the division to manu-facture new products that can add value to customer end-products.

Outlook
Fibertex Personal Care has not been notably affected by the general economic downturn. On the other hand, Fiber-tex Industrial Nonwovens has been severely impacted, although sales to the conventional industry markets and the automotive industry have recovered nicely in 2010. In addition, a pent-up demand is expected, including for geotextiles for infrastructure projects.

As a result, Fibertex retains its full-year 2010 guidance of revenue of approximately DKK 1.5 billion and EBIT in the range of DKK 100-125 million.

However, raw materials prices were on an upward trend at the start of the second quarter, which puts pressure on margins in the short term and increases the probability of profits ending at the lower end of the forecast range.

Aktieselskabet Schouw & Co.

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