Home / Knowledge / News / Textiles / PGI demonstrates strong cash flow generation
PGI demonstrates strong cash flow generation
Aug '10
Polymer Group, Inc. reported results of operations for the second quarter ended July 3, 2010.

Highlights included:

Top Line Results Reflect Strong Trends
Net sales were $289.7 million compared with sales from continuing operations of $206.0 million in the second quarter of 2009 and net sales of $279.4 million for the first quarter of 2010, reflecting strong gains in volume in Europe, Asia and Latin America, a better-than-expected contribution from Spain, higher selling prices due to the pass-through of higher raw material costs and increased sales of higher grade medical products in Asia.

Profitability Improved Sequentially and Year-over-Year
Gross profit improved to $53.3 million from $42.6 million in the prior-year period and $48.3 million in the first quarter of 2010.

Raw material costs peaked in April 2010 in North America and declined in May, June and July 2010, resulting in some positive impact at the end of the second quarter and setting the stage for increased profitability in the third quarter of 2010.

Adjusted EBITDA increased to $32.4 million compared with $30.6 million in the prior-year period and $27.8 million in the first quarter of 2010. Adjusted EBITDA, a non-GAAP financial measure, is defined and reconciled to net income below.

Investing in Growth
Contributions from the company's December 2009 acquisition of a nonwovens business in Spain were evident once again in the significant year-over-year improvement in volumes and profitability in the second quarter of 2010 as well as sequential improvement in the business from the first quarter.

In June 2010, the company initiated construction at its facility in Waynesboro, Virginia for installation of its new state-of-the-art, custom-designed spunmelt machine. Representing a total investment of approximately $65 million, the new capacity is expected to come online in the second half of 2011. The expansion complements new proprietary high barrier spunmelt capacity being constructed at the company's facility in Suzhou, China, which remains on track to be online in mid-2011.

PGI's chief executive officer, Veronica (Ronee) M. Hagen, stated, "The strong volume trends throughout all of our regions reflect improving demand in the consumer, industrial and medical markets as well as higher yields from production efficiencies in Europe and Asia. We demonstrated strong cash flow generation and Adjusted EBITDA growth as well as sequential quarter reduction in net debt. We also continued to execute well on our growth initiatives with new spunmelt capacity now under construction in both Asia and the U.S. and significant improvement in PGI Spain operations."

Click here for more details

Polymer Group Inc.

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 29th Apr 2017

EU rules needed to curb textile worker exploitation: MEPs

European Union (EU) rules are needed to oblige textile and clothing...

Apparel/Garments | On 29th Apr 2017

US retail operating growth to be 1.5-2.5% in 2017: Moody's

The forecast for operating income growth in the US over the next 12...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Jurgen Gauger

‘Buying crowdsourced or creative designs are much more appealing to the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Suresh Patel
Sidwin Fabric

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Rupa Sood and Sharan Apparao

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
April 2017

April 2017

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


Browse Our Archives


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