Home / Knowledge / News / Textiles / PGI experiences benefit of lower raw material costs
PGI experiences benefit of lower raw material costs
Nov '10
Polymer Group Inc (PGI) reported results of operations for the third quarter ended October 2, 2010.

Highlights included:

• Top Line Results Up in All Regions Year-over-Year on Improved Sales/Mix and Volume Growth

• Net sales were $297.4 million compared with sales from continuing operations of $223.0 million in the third quarter of 2009 and net sales of $289.7 million for the second quarter of 2010, reflecting year-over-year improvement in all regions and sequential growth in most regions. Volume gains in Europe, U.S., Asia and Latin America were especially strong with Spain continuing to generate results better than originally anticipated. Higher selling prices reflected the pass-through of higher raw material costs and increased medical sales.

• Profitability Improved Sequentially and Year-over-Year

• Gross profit improved to $59.5 million from $47.3 million in the prior-year period and $53.3 million in the second quarter of 2010.

• Favorable movements in raw material costs in late second quarter provided a positive impact to third quarter profitability. Raw material costs, however, began to increase slightly late in the third quarter.

• Adjusted EBITDA increased to $37.6 million compared with $33.4 million in the prior-year period and $32.4 million in the second quarter of 2010. Adjusted EBITDA, a non-GAAP financial measure, is defined and reconciled to net income below.

• Growth Investments On Track for Mid-2011 Commercialization

• The company's investments in proprietary high barrier spunmelt capacity in Suzhou, China and Waynesboro, Virginia remain on track to be online in mid-2011. The new state-of-the-art, custom-designed spunmelt machines will bring much needed capacity to the company's businesses in the U.S. and China.

• Strategic Review Process Culminates in Agreement to Sell the Company

• On October 4, 2010, the company announced it had entered into a definitive agreement to be acquired by an affiliate of Blackstone Capital Partners V L.P. for up to $18.16 in cash per share, which includes $2.91 per share to be held in escrow to cover potential tax liabilities, costs and expenses related to the previously disclosed personal holding company tax issue. The transaction is expected to close prior to the end of the first quarter of 2011.

PGI's chief executive officer, Veronica (Ronee) M. Hagen, stated, "The strong sales pace and operational improvements we established earlier in the year have continued through the third quarter with year-over-year growth across the business and better-than-expected results.

“As anticipated, we experienced the benefit of lower raw material costs from the preceding quarters, which translated into strong cash flow generation, Adjusted EBITDA growth and reduction in net debt. We are executing well with operational initiatives, extending our leadership and are on track with significant investments to meet growing demand for our products."

Click here for more details

Polymer Group Inc

Must ReadView All

Courtesy: India ITME

Textiles | On 8th Dec 2016

Industry needs to create 1cr jobs in 3yrs: Kavita Gupta

Sharing several initiatives laid out by the government in R&D,...

Textiles | On 8th Dec 2016

Package will boost made-ups sector: SIMA

The reforms package approved by the Union Cabinet to boost employment ...

Textiles | On 8th Dec 2016

Cabinet okays reforms to boost jobs in made-ups sector

The Union Cabinet chaired by prime minister Narendra Modi has given...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Suresh Patel
Sidwin Fabric

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Wendell Rodricks
Wendell Rodricks

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

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

December 2016

December 2016

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


Browse Our Archives


Advanced Search