Fiberweb plc, the international non-woven fabrics group reports its results for the half year ended 30 June 2007.
Fiberweb’s first half results reflect ongoing turnaround and restructuring actions, which have created a solid platform for improved performance in the second half of 2007 and beyond.
The Group achieved several key goals laid out at demerger and made significant progress in improving its operational performance and structure.
• Successful completion of the sale of hygiene wipes and cotton bleaching, such that Industrial now generates over 40% of sales
• Net debt reduction of £40.3 million from £165.3 million to £125.0 million
• Improved working capital performance: cash inflow of £1.1 million (2006: outflow of £2.6 million); trade working capital reduced to 17.8% of annualised sales (December 2006: 18.9%)
• Increase in continuing underlying operating margins in hygiene from 3.9% to 4.3%
• Continuing underlying operating margins in non-US Industrial doubled from 3.7% to 7.4%
• Continuing Industrial sales growth of 5.2% at constant exchange
• Ongoing investment programme with commissioning of two major new European Hygiene assets expected to benefit the second half
• Rapid implementation of cost and pricing actions in Americas Industrial to address legacy issues and continuing weakness in construction markets
Commenting on the results, Daniel Dayan, Chief Executive, said:
“We have madesignificant progress in restructuring Fiberweb in what has been a challenging first half. Within the portfolio, I am pleased that we have divested a substantial majority of ‘Weak Hygiene’, reducing net debt and further focusing on businesses with the most attractive growth and profit potential, and that we delivered further growth in our Industrial businesses."
"As promised at demerger, we have delivered underlying operating margin expansion in our hygiene business and in our industrial businesses outside the US."
"The problems that we identified in the US Industrial business during the period have been dealt with effectively and we are confident this business will now see steady improvement. The foundations of our turnaround are secure and we are well positioned to see a much-improved performance in the second half.”
Fiberweb’s first half results reflect ongoing turnaround and restructuring actions, which have created a solid platform for improved performance in the second half of 2007 and beyond.
The Group achieved several key goals laid out at demerger and made significant progress in improving its operational performance and structure.
• Successful completion of the sale of hygiene wipes and cotton bleaching, such that Industrial now generates over 40% of sales
• Net debt reduction of £40.3 million from £165.3 million to £125.0 million
• Improved working capital performance: cash inflow of £1.1 million (2006: outflow of £2.6 million); trade working capital reduced to 17.8% of annualised sales (December 2006: 18.9%)
• Increase in continuing underlying operating margins in hygiene from 3.9% to 4.3%
• Continuing underlying operating margins in non-US Industrial doubled from 3.7% to 7.4%
• Continuing Industrial sales growth of 5.2% at constant exchange
• Ongoing investment programme with commissioning of two major new European Hygiene assets expected to benefit the second half
• Rapid implementation of cost and pricing actions in Americas Industrial to address legacy issues and continuing weakness in construction markets
Commenting on the results, Daniel Dayan, Chief Executive, said:
“We have madesignificant progress in restructuring Fiberweb in what has been a challenging first half. Within the portfolio, I am pleased that we have divested a substantial majority of ‘Weak Hygiene’, reducing net debt and further focusing on businesses with the most attractive growth and profit potential, and that we delivered further growth in our Industrial businesses."
"As promised at demerger, we have delivered underlying operating margin expansion in our hygiene business and in our industrial businesses outside the US."
"The problems that we identified in the US Industrial business during the period have been dealt with effectively and we are confident this business will now see steady improvement. The foundations of our turnaround are secure and we are well positioned to see a much-improved performance in the second half.”
