Higher sales at Polymer Group
US-based textiles producer Polymer Group, Inc. has reported improved unaudited results for its fourth quarter ended December 30.
Net sales for the fourth quarter were $263.9 million, up $23.5 million from $240.4 million in the fourth quarter of 2005. Sales were said to have been driven by higher volumes from new capacity additions and price increases implemented to offset higher raw material costs. Gross profit increased $4.7 million to $41.4 million compared with $36.7 million in the 2005 quarter, a 12.8% increase.
Net sales for full-year 2006 were $1.02 billion, up $72.8 million over the prior year although gross profit slipped to $156.2 million from $161.5 million. This decline was partially attributed to $3.8 million of higher depreciation costs as new lines were commissioned, in addition to lower profitability experienced during the second and third quarters of the year.
The company expects to improve profits in 2007 as a result of the full-year impact of capacity expansions that were completed in 2006, new technology commercialisations in the second half of 2007 and lower costs from restructuring and consolidation plans that have been initiated.
