PGI Q4'FY13 net sales up 5.1%

01 Apr '14

2 min read

Polymer Group, Inc. reported results of operations for the year and the fourth quarter ended December 28, 2013.

As previously announced, the Company completed the acquisition of Fiberweb on November 15, 2013 (the "Acquisition Date"), whereby Fiberweb became a wholly-owned subsidiary of the Company. The results of operations of Fiberweb have been included in the Company's fiscal 2013 consolidated results since the Acquisition Date.

FISCAL YEAR 2013 RESULTS

Net sales were $1,214.9 million for the fiscal year ended December 28, 2013 compared with $1,155.2 million for the fiscal year ended December 29, 2012. The increase in net sales was primarily driven by an increase in overall volumes and favorable foreign currency impacts, partially offset by reduced pricing.

Net sales in Asia increased 10.1% in fiscal 2013, primarily driven by a strong healthcare market as well as incremental volume from our new hygiene manufacturing line.

In addition, net sales in Americas and Europe increased 3.0% and 7.6%, respectively, as incremental Fiberweb sales and continued contribution from a new spunmelt line in Waynesboro, Va., helped mitigate soft volume in the Americas hygiene markets and European healthcare markets.

Overall volume growth contributed $50.1 million to net sales and $4.3 million of profit contribution compared with the fiscal year ended December 29, 2012. The increase was driven by the contribution of Fiberweb results since the Acquisition Date, representing an incremental $51.9 million of sales and $3.1 million of operating income excluding purchase accounting adjustments.

Additionally, incremental volume growth of $19.7 million in Asia was driven by higher volumes sold in the hygiene and healthcare markets, both of which were supported by our recent capacity expansions.

These amounts were partially offset by volume reductions in the Americas and Europe, which had a combined net impact of $23.2 million. European results reflected the stabilization of underlying demand in the industrial markets and contributions from volume growth in wipes. However, weaker volumes experienced by certain key customers in the hygiene market resulted in lower total volumes for the region.

Sales volumes were lower in the Americas primarily driven by the 2012 exit of certain low-margin business in the healthcare market as well as lower consumer disposable volume. Incremental volume in the Oriented Polymers segment contributed $1.7 million of sales growth due to higher demand in the building products market, offset by lower demand in the industrial packaging and agriculture markets.

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PGI

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