PGI swings to a profit

Charlotte, N.C. — Despite lowered sales volume, Polymer Group posted a profit for the first quarter of $7.68 million up 43% from $1.32 million in last year’s first quarter and reversing a loss of nearly $7 million in the fourth quarter. 

“We previously stated that we expected a strong first quarter and our results were ahead of expectations,” said ceo Ronee Hagen when the results were posted late yesterday. “We were able to fully benefit from the volatility of the raw material markets even in a tough economic environment. Our consumer disposable volumes were relatively stable during the quarter with the most significant impacts seen in the industrial markets as expected.” 

Profitability improved significantly over the prior year with first quarter gross profit up 22.7% to $52.6 million, representing a gross profit margin of 23.2% compared to 15.7% for the first quarter of 2008. Operating income for the quarter was $22.2 million, 83.0% higher than the prior year period, and net income attributable to PGI was $9.6 million compared to $1.4 million in the first quarter of 2008. “

While we do not anticipate sustaining the margins achieved in the first quarter, we still expect the remainder of the year to show solid results,” she said. 

Sales fell 17.0% to $227.2 million for the first quarter. PGI attributed the decline to lower industrial sales, foreign currency exchange rates and lower selling prices reflecting lower raw material costs. During the month of April, the company completed the installation of a new spunmelt line in San Luis Potosi, Mexico to serve the North American hygiene and medical markets.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!