Polymer Group Inc. reported a 3.9% increase in sales volumes during the third quarter due largely to new capacity in the Americas and Asia combined with increased demand in healthcare and certain industrial markets. Lower sales prices, however, added up to lower sales, which decreased to $290.1 million compared to $315.5 million in 2011.
Gross profit increased 6.1% to $52 million, due largely to a more favorable raw material environment as well as improved efficiencies in carded operations in the Americas.
“We demonstrated strong profitability in the third quarter as expected, assisted by a favorable raw material cost environment, continued improvement in cost controls and the initial benefits from our new global operating structure,” says president and CEO Veronica (Ronee) Hagen. “I’m pleased with the incremental volume gains and sequential growth in the quarter, particularly in the Americas and Asia, as we continue to navigate industry overcapacity in the global hygiene markets and foreign currency headwinds.”