Polymer Group Inc announced results of operations for the first quarter ended April 1, 2006.
Operational highlights included:
- Sales continued to increase to record levels with first quarter sales growing 6.6 percent to $260.4 million compared to the first quarter of 2005 and 8.3 percent compared to $240.4 million in the fourth quarter of 2005.
- Gross profit recovered from the difficult fourth quarter 2005 operating environment and was essentially in line with first quarter 2005.
Net sales for the first quarter of 2006 were $260.4 million compared to $244.4 million in the first quarter of 2005 and $240.4 million in the previous quarter.
Sales growth year-over-year was driven primarily by improved volumes in the nonwovens businesses in addition to higher sales prices reflecting the impact of increased raw material costs.
Gross profit was $43.2 million for the first quarter, representing a gross profit margin of 16.6 percent compared to $36.7 million and 15.3 percent, respectively, for the previous quarter and $43.9 million and 18.0 percent, respectively, for the same period in 2005.
The company successfully improved profitability compared to the fourth quarter of 2005 as a result of product mix improvements and price increases implemented to mitigate the effects of raw material cost increases experienced in the fourth quarter of 2005.
Operating income for the first quarter of 2006 was $8.6 million, which included $1.6 million of restructuring and plant realignment costs primarily associated with the company's plans to consolidate its corporate headquarters to Charlotte, North Carolina.
marketing@alchempro.com
