01.01.04
Location: Gatineau, Quebec, Canada
Sales: $117 MILLION
Description: Key Personnel
Raoul Heredia, president
Plants
Gatineau, Thurso, Quebec, Germany
Processes
Airlaid
Major Markets
Wipes, feminine hygiene, diapers
Despite continued financial problems, airlaid producer Concert Industries was able to grow its sales nearly 40% in 2003, to reach CDN$162.8 million ($117 million).
This significant sales growth was attributed to the fact that 2003 was Concert’s Gatineau facility’s first full year of operation. The Gatineau site was built in 2001 to house two side-by-side airlaid lines with a combined capacity of 38,000 tons. It is unclear how much of that capacity is currently being utilized. Beyond Gatineau, Concert also attributed continued success of its European operations to the rise in sales.
Sharp sales increases, however, have not added up to earnings success for the company. In 2003, the company recorded a net loss of $167 million, which largely related to write downs and refinancing related to North America. Chief among these is the closure of a facility in Charleston, SC, which was purchased from ACI in 2000 and the relocation of the company’s corporate headquarters from Vancouver to Quebec.
Also contributing to these problems have been pricing pressures within the North American airlaid market. In August 2003, these pressures resulted in Concert’s filing for protection from its creditors arrangement under CCAA Proceedings. This order included Concert’s North American operations; its European business was not affected by the situation. Concert’s most recent announcement regarding CCAA indicated that this order was effective until September 30. Until that time, all operations are being considered under a restructuring measure, according to reports.
In announcing this update, Concert also indicated that it had narrowed its 2004 second quarter loss from CDN$5.9 million during the same period of last year to CDN$0.9 million last year. Meanwhile, sales continued to their climb, up nearly 18% to CDN$45.7 million this year. Additionally, gross margins were able to increase 49.2% thanks to increased volumes and improved productivity and fixed expenses dropped significantly on ramped-up product development efforts and reduced overhead costs.
Sales: $117 MILLION
Description: Key Personnel
Raoul Heredia, president
Plants
Gatineau, Thurso, Quebec, Germany
Processes
Airlaid
Major Markets
Wipes, feminine hygiene, diapers
Despite continued financial problems, airlaid producer Concert Industries was able to grow its sales nearly 40% in 2003, to reach CDN$162.8 million ($117 million).
This significant sales growth was attributed to the fact that 2003 was Concert’s Gatineau facility’s first full year of operation. The Gatineau site was built in 2001 to house two side-by-side airlaid lines with a combined capacity of 38,000 tons. It is unclear how much of that capacity is currently being utilized. Beyond Gatineau, Concert also attributed continued success of its European operations to the rise in sales.
Sharp sales increases, however, have not added up to earnings success for the company. In 2003, the company recorded a net loss of $167 million, which largely related to write downs and refinancing related to North America. Chief among these is the closure of a facility in Charleston, SC, which was purchased from ACI in 2000 and the relocation of the company’s corporate headquarters from Vancouver to Quebec.
Also contributing to these problems have been pricing pressures within the North American airlaid market. In August 2003, these pressures resulted in Concert’s filing for protection from its creditors arrangement under CCAA Proceedings. This order included Concert’s North American operations; its European business was not affected by the situation. Concert’s most recent announcement regarding CCAA indicated that this order was effective until September 30. Until that time, all operations are being considered under a restructuring measure, according to reports.
In announcing this update, Concert also indicated that it had narrowed its 2004 second quarter loss from CDN$5.9 million during the same period of last year to CDN$0.9 million last year. Meanwhile, sales continued to their climb, up nearly 18% to CDN$45.7 million this year. Additionally, gross margins were able to increase 49.2% thanks to increased volumes and improved productivity and fixed expenses dropped significantly on ramped-up product development efforts and reduced overhead costs.