Polymer Group Inc. rebounded from a big loss at the end of last year to eke out a $213,000 profit, or earnings of a penny per share, in the first quarter.
But that was well below the $9.6 million, or 55 cents per share, it earned a year ago.
Net sales for the latest quarter totaled $280 million, well above the $210 million in sales a year earlier. Higher raw material prices, acquisition and integration costs, and higher administrative expenses contributed to the lower earnings.
“The rapid and significant increase in raw material costs year-to-date is consistent with the climate of volatility we expected heading into the year, but we are confident our initiatives to reduce the impact and maintain spreads will keep us on the right course for delivering underlying improvement in 2010,” says Chief Executive Veronica Hagen. “The increasing demand in our consumer markets across all regions and the stabilization occurring in industrial durables are encouraging.”
After the high losses in 2009, the Charlotte-based manufacturer’s board has established a committee of independent directors to evaluate the strategic alternatives. It also has retained Blackstone Advisory Partners as its financial adviser and Cravath, Swaine & Moore as its legal adviser to assist in the evaluation.
For all of 2009, the company (OTCBB:POLGA) posted net income of $18.2 million, or 92 cents per diluted share. In fiscal 2008, the company earned $5.4 million, or 27 cents per diluted share.
Polymer Group markets a line of highly absorbent disposable fabrics for medical, industrial and hygiene products.
The company’s headquarters is in Harris Corners Business Park, off Interstate 77 in north Charlotte. Polymer Group has 14 manufacturing and converting facilities in nine countries, including an operation in Mooresville.