Polymer Group Inc.’s (PGI) sales for the third quarter of 2009 were $223 million, compared to $284.1 million in 2008. The decline was due primarily to lower selling prices to reflect lower overall raw material costs and lower volumes in the industrial segments, which most affected the U.S. and European nonwovens businesses and the Canadian business in Oriented Polymers. Foreign currency changes impacted sales by about $9 million as the U.S. dollar weakened to most currencies.
Gross profit for the quarter increased 16.4% over the prior year to $47.2 million and up 10.1% for the nine-month period to $139.2 million. As a result of lower sales due to lower prices and lower volumes, gross profit margins were 21.2% and 21.8% for the three-month and nine-month period compared to 14.3% and 15.6% respectively, for the prior year.
Operating income for the third quarter 2009 increased 148.9% over the same period the prior year to $18.7 million. Year-to-date operating income from continuing operations increased 60.9% over the first nine months of 2008.