14 February 2002 15:29 [Source: ICIS news]
HOUSTON (CNI)--Polyester and fibres producer Wellman reported a 74% decline Thursday in 2001 net income including a fourth quarter loss of $600 000 (Euro681 818) with the company blaming the impact of soft economics in the textile industry.
For the year ended 31 December, the Shrewsbury, New Jersey-based company reported net income of $8.4m on 3% lower sales of $1.08bn with earnings/share of 26 cent compared with net income of $32.8m on sales of $1.12bn in 2000.
In the fourth quarter, Wellman posted a 15% decline in sales to $237m. Its loss compared with net income of $9.6m in the same period of 2000. Excluding the impact of unusual items in the quarter, Wellman posted a loss of $5.3m with net income for the year of $11.8m.
Wellman said the loss in the fourth quarter included $4.7m worth of one-time income from an insurance payment for business interruption. In terms of operating profits, the company reported a 56% decline for the year to $27.5m with an 87% fourth quarter decrease to $2.2m.
Looking ahead, Tom Duff, Wellman's chairman and chief executive officer, noted that the company has launched a new fibres strategy focused on differentiated and higher value-added products. He said he expects to see capacity utilisation increase this year through 2003 in polyethylene terephthalate (PET).
During the last seven quarter Wellman has repaid more than $85m worth of debt, according to Duff.
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