Home / Knowledge / News / Textiles / Polymer Group gross profit up 8.5% for Q3

Polymer Group gross profit up 8.5% for Q3

06
Nov '08
Polymer Group Inc reported results from operations for the third quarter and nine-month periods ended September 27, 2008. PGI reported record sales for the third quarter of $301.0 million, up 17.5% over the prior year. The top line growth was driven predominantly by higher selling prices in response to higher raw material costs, but also included positive contributions from an improved mix in many market segments and higher overall volumes in the Nonwovens business of $12.6 million.

Volume growth was achieved in Latin America, predominantly in Argentina, where the company added capacity at the end of last year, and in Asia where steady increases in high grade medical fabric production have resulted in higher volumes and an improved profit mix. Additionally, the company's proprietary Spinlace(R) product volumes were contributing at full capacity during the quarter. Sales in the Oriented Polymers business were negatively impacted by lower volumes; however, positive contributions from improved product mix and higher selling prices resulted in year-over-year sales growth.

While gross profit of $43.0 million for the third quarter was $3.3 million higher than the third quarter of 2007, profitability was negatively impacted during the quarter by the large run up in raw material unit costs in July, specifically in polypropylene, on the heels of cost increases already experienced late in the second quarter.

These cost increases were greater than the increase in selling prices that the company was able to achieve during the same period. The impact of higher raw material costs was partially offset by improved price/mix of sales and lower depreciation charges, resulting from fiscal 2007 impairments, during fiscal 2008. The raw material component of the cost of goods sold as a percentage of net sales increased from 53.3% in 2007 to 56.8% in 2008.

Operating income for the third quarter of 2008 was $9.0 million compared to a loss of $7.2 million in the third quarter of 2007 and operating income of $14.0 million in the second quarter of 2008. Included in operating income were special charges of $1.7 million in the third quarter of 2008 primarily related to exit costs associated with our previously announced plant closures and consolidations in the US and Europe. Special charges amounted to $20.4 million in the third quarter of 2007 and $1.8 million in the second quarter of 2008.

Selling, general and administrative (SG&A) expenses were lower than the previous quarter by $0.7 million, due primarily to the absence of certain separation costs recognized in the second quarter. However, total SG&A was higher than the prior year by $3.9 million, with $1.1 million of this increase due to strengthening foreign currencies and an additional $1.0 million dollars resulting from higher export and distribution expenses associated with new volumes in Argentina.

PGI reported net income for the third quarter of $3.4 millioncompared to $2.4 million in the second quarter and a loss of $20.9 million in the third quarter of 2007.


Interviews View All

Yash Agarwal, Hitansh Online

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Janak Dhamanwala & Sunil Dhamanwala, Jansun

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Krishnanand Tripathi, Textrade International Ltd

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Ravi Raj Desai,

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

Vikas Banduke,

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Mr Hartmann Huth, Trevira GmbH

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2019

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

news category


Related Categories:

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search