Wellman results stronger; sells Euro unit
July 26, 2007-- Home Textiles Today,
Fort Mill, S.C. – Fortrel polyester producer Wellman reported a narrowed loss in its second-quarter results, and also said it has sold its European recycled-based fibers business for about $38 million.
Wellman’s net loss of $11.6 million, or $0.36 per share, for the quarter ended June 30 was an improvement over last year’s second-quarter net loss of $14.5 million, or $0.46 per share. Results for the six months year-to-date, however, showed a loss of $38.7 million, or $1.20 per share, compared to the loss of $33.4 million, or $1.05 per share for the same period in 2006.
The company said “strong PET resin demand and improved PET resin margins” were driving the improved quarterly results.
The Euro business, with an annual production capacity of 185 million pounds of polyester staple fiber, was sold to an affiliate of Aurelius AG. About the sale, Wellman chairman and ceo Thomas Duff said it “reflects our strategy to focus on our U.S. chemical-based business.”