PGI Nonwovens continues to provide strong underlying performance
06 Nov '07
3 min read
Net sales for the third quarter of 2007 were $256.2 million, up $7.6 million or 3.1% compared to $248.6 million in the third quarter of 2006. Sales increases during the quarter were primarily driven by the impact of higher comparable selling prices resulting from an improved mix of sales and price increases to mitigate the effect of higher raw material costs as well as foreign currency movement.
During the quarter, the company successfully completed its previously announced consolidation of the two U.S. plants into other locations. As a result of the plant closures and the company's decision to exit certain lines of business with unacceptable profit levels, volumes in those businesses were lower.
Additionally, the company began the reconfiguration of equipment in its Benson, North Carolina plant to enable the production of Spinlace products in the fourth quarter which also resulted in lower volumes as the prior product platforms were discontinued.
Offsetting these impacts were higher volumes and improved mix in the company's Asian operations as the plant in Suzhou continued its ramp up during the quarter. Volumes and the mix of product sales in the Oriented Polymers (OPD) segment continue to remain depressed, primarily in Canada, due to poor market conditions.
Gross profit increased $4.5 million to $39.7 million for the third quarter, an increase of 12.9% over the prior year comparable period. Gross profit margin for the quarter also improved to 15.5% of sales compared to a gross profit margin for the third quarter of 2006 of 14.1%.
marketing@alchempro.com
