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Polymer Group Q3FY14 sales leap 72%

13 Nov '14

2 min read

Net sales in the third fiscal quarter ending September 27, 2014 at nonwovens producer, Polymer Group, Inc. (PGI) leapt 72.2%, from a year ago quarter.

PGI sales zoomed to $498.0 million for the third quarter of 2014 compared with $289.0 million for the third quarter of 2013.

PGI attributed the rise in net sales to an increase in overall volumes as well as improved pricing and incremental sales from acquisitions of both, Fiberweb and Providencia.

Driven by a strong healthcare market as well as incremental volume from its new hygiene manufacturing line, Asian sales increased 10.5% year-on-year.

In addition, net sales in South America, Europe and North America surged 177.1%, 85.5% and 56.3%, respectively, all from a year earlier quarter.

Third quarter of 2014 gross profit totalled to $80.5 million, up $32.3 million from the same quarter of 2013.

“The primary drivers of the hike are contributions from Fiberweb of an incremental $21.6 million and Providencia $9.0 million,” PGI said.

SG&A expenses for the review period amounted to $65.8 million, a rise of $32.3 million from the prior year quarter, again mainly rising from incremental costs of Fiberweb and Providencia.

Higher special charges and the impact of purchase accounting adjustments associated with Fiberweb and Providencia led to operating income falling drastically to $2.1 million, from $7.0 million in the third quarter of 2013.

Interest expense during the reporting quarter was $28.8 million, while it incurred foreign currency and other net expense of $26.6 million.

Adjusted EBITDA for the third quarter of 2014 went up to $57.9 million versus $35.3 million for the third quarter of 2013.

Net loss for the reporting period too grew steeply to $55.2 million compared with a net loss of $8.3 million for the third quarter of 2013.

CEO at PGI, Joel Hackney said, “PGI delivered a solid third quarter, following a strong second quarter, with record sales as our base business, strategic acquisitions and growth initiatives continue to build momentum.

“Our focus remains on strategic initiatives that will result in growth in new markets and economic leadership that will result in a safer, cleaner and healthier world," he informed. (AR)

Fibre2fashion News Desk - India