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Nonwovens segment sales drive PGI 2007 results
12 Mar '08
3 min read
Polymer Group (PGI) reported results of operations for the fourth quarter and fiscal year ended December 29, 2007.
Highlights Included:
• Net sales for fiscal year 2007 increased 3.7% to $1.06 billion, driven primarily by growth in the Nonwovens segment. Sales for the fourth quarter of $265.4 million were essentially flat compared to the prior year period.
• Gross profit for fiscal year 2007 increased 8.1% to $168.9 million compared to the prior year and the gross profit margin increased by 65 basis points to 15.9% despite significant increases in raw material costs in the fourth quarter. Fourth quarter 2007 gross profit of $38.9 million was $2.6 million lower than the fourth quarter of 2006, due primarily to the severe and rapid increases in raw material costs experienced during the last three months of 2007.
• Adjusted EBITDA increased 8.0% during the year to $119.9 million. The company expects continued improvement in Adjusted EBITDA in 2008. Adjusted EBITDA, a non-GAAP financial measure is defined and reconciled to net loss below.
"PGI made strong progress implementing our key initiatives in 2007 leading to top line growth and improved margins despite market headwinds in certain industrial sectors," said PGI's chief executive officer, Veronica (Ronee) M. Hagen.
"Our strong performance trajectory was diminished in the fourth quarter by significant and rapid raw material cost increases. Despite this impact, we have plans in place that we believe will enable us to continue the trend of top line growth, margin improvement and increases in cash generation in 2008," Hagen said.
Highlights Included:
• Net sales for fiscal year 2007 increased 3.7% to $1.06 billion, driven primarily by growth in the Nonwovens segment. Sales for the fourth quarter of $265.4 million were essentially flat compared to the prior year period.
• Gross profit for fiscal year 2007 increased 8.1% to $168.9 million compared to the prior year and the gross profit margin increased by 65 basis points to 15.9% despite significant increases in raw material costs in the fourth quarter. Fourth quarter 2007 gross profit of $38.9 million was $2.6 million lower than the fourth quarter of 2006, due primarily to the severe and rapid increases in raw material costs experienced during the last three months of 2007.
• Adjusted EBITDA increased 8.0% during the year to $119.9 million. The company expects continued improvement in Adjusted EBITDA in 2008. Adjusted EBITDA, a non-GAAP financial measure is defined and reconciled to net loss below.
"PGI made strong progress implementing our key initiatives in 2007 leading to top line growth and improved margins despite market headwinds in certain industrial sectors," said PGI's chief executive officer, Veronica (Ronee) M. Hagen.
"Our strong performance trajectory was diminished in the fourth quarter by significant and rapid raw material cost increases. Despite this impact, we have plans in place that we believe will enable us to continue the trend of top line growth, margin improvement and increases in cash generation in 2008," Hagen said.
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