Polymer Group Q3 sales marginally down

THIRD QUARTER 2013 RESULTS

Net sales were $289.0 million for the third quarter of 2013 compared with $290.1 million for the third quarter of 2012.  The decrease in net sales was primarily driven by lower overall volumes, partially offset by improved pricing and favorable foreign currency impacts.

Net selling prices increased $0.2 million compared with the third quarter of 2012.  The pricing increase, which included $2.1 million in the Americas and $1.0 million in Europe, resulted from passing through higher raw material costs associated with index-based selling agreements and market-based trends. 

In addition, favorable foreign currency impacts of $4.1 million resulted in the higher translations of sales generated in foreign jurisdictions, particularly in Europe and Asia.  However, these amounts were partially offset by lower net selling prices in Asia as more hygiene volumes were sold at lower overall selling prices, a result of the product mix of sales compared with the prior period.

Overall volume in the Nonwoven segments decreased $5.0 million compared with the third quarter of 2012.  Incremental growth of $4.3 million in Asia was primarily driven by higher volumes sold in the Healthcare market from the new spunmelt line installed in 2011. In addition, we completed the installation of our manufacturing line in May 2013, which will provide additional capacity in the Hygiene market in Asia. 

Volumes were lower in the Americas and Europe, impacting sales by a combined $9.3 million.  European volumes reflected improvements in the Healthcare and industrial markets, offset primarily by reductions in the Hygiene market.  The Americas were impacted by the exit of certain low-margin business in the Healthcare market during late 2012 and lower consumer disposable volumes.  In addition, net sales in our Oriented Polymers segment decreased $0.7 million primarily due to lower demand in the construction and industrial markets.

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Polymer Group