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Fiberweb Sales Up

July 7, 2008

Efficiency improvements and pricing actions outweighed the impact of raw material costs.

According to a recent announcement by Fiberweb, the company has continued to perform in line with its expectations. Total sales are slightly ahead of the prior year at constant currency, with growth in hygiene more than offsetting the downturn in U.S. and European construction markets.

During the first half of 2008, efficiency improvements and pricing actions have outweighed the impact of raw material costs which, notwithstanding record oil prices, have been somewhat constrained in Europe, but have increased considerably in the U.S. As a result, margins remain in line with the company’s expectations.  

The introduction of new lines and cost reductions during the first half of 2008 are expected to impact performance positively in the second half. As indicated in its recent Interim Management Statement, Fiberweb is in the process of implementing additional cost reductions, further details of which will be released in August.

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