Polymer Group Inc reported results from operations for the second quarter and six-month period ended July 1st 2006.
Highlights included:
-- Sales increased 5.4% to $248.7 million over the second quarter of 2005 and 6.0% for the first six months compared to the same period of the prior year.
-- Gross profit was $36.5 million in the second quarter and $79.7 million for the first six months compared to $41.9 million and $85.9 million, respectively, the prior year, impacted primarily by higher manufacturing costs resulting from lower efficiencies associated with weak volumes in certain market segments and higher raw material costs that were not fully mitigated during the quarter due to timing lags associated with contracted business.
-- Business improvement initiatives and new program platforms were initiated during the quarter to drive profitability going forward.
Additionally, the company reported that each of the three capacity installations initiated in late 2004 and 2005 are complete and at various stages of start-up. During the quarter, it successfully addressed start-up issues at its Cali, Colombia plant that negatively impacted results for the first half of 2006. These issues have been fully resolved and the Cali line was operating at commercial production rates by the end of the second quarter.
PGI held a commissioning ceremony on June 20, 2006 for its new line in Mooresville, NC. The line started up during the quarter and has initiated production of lightweight material. This line is expected to continue ramping up during the third quarter and to be at commercial production rates by the end of the quarter.
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