Polymer Group, Inc., Charlotte, NC, has reported third quarter and nine-month results. Sales for the quarter grew 8.9% to $248.6 million over the third quarter of 2005. Gross profit, impacted by continued increases in raw material costs and certain product mix changes, declined to $35.1 million for the third quarter compared to $38.9 million the prior year.
Operating income for the third quarter of 2006 was $10.1 million compared to $12.8 million in the third quarter of 2005. Polymer Group reported a net loss for the third quarter of $1.5 million compared to net income of $0.2 million the prior year and a net loss of $12.6 million in the second quarter of 2006.
For the nine months ended September 30, 2006, sales were $757.7 million, up $49.3 million, or 7%, from the same period in 2005. The company's year-to-date gross profit was $114.8 million compared to $124.8 million the prior year. Operating income in the first nine months of 2006 was $13 million compared to $45.3 million for the first nine months of the previous year. The company recorded a net loss for the first nine months of 2006 of $15.7 million compared to net income of $9.4 million for the same period the prior year.
Spending for the company's major capacity expansion program was completed during the quarter. Although slower than expected, sales volumes ramped up significantly during the latter portion of the quarter, building strong momentum as the company enters the fourth quarter. As raw material costs abate, the company expects stronger results for the balance of the year.