Fiberweb plc Interim Results 2009
6 August 2009
Fiberweb plc, the leading international nonwoven fabrics producer, annouces its interim results for the six months ended 30 June 2009.
Highlights
- Fourth consecutive period of underlying(1) operating margin growth; continued steady performance improvement despite recessionary markets
- 17% volume decline, with pressure on industrial and airlaid segments mitigated by defensive consumer fabrics performance; some signs of market volumes stabilising
- Revenue decline of 6.8% to £242.5 million (H1 2008: £260.0 million) from impact of both the pass-through effect of lower raw material prices and lower volumes
- Underlying(1) operating profit increase of 21.5% to £10.7 million (H1 2008: £8.8 million)
- Underlying(1) operating profit margin increase to 4.4%, 40bps above H2 2008 and 100bps above H1 2008
- Net operating cash inflow increase of 30% to £34.0 million (H1 2008: £26.2 million), assisted by strong working capital performance
- Net debt reduced by £26.8 million from year end (31 December 2008: £149.9 million) to £123.1 million, with net debt/EBITDA now at 2.3x
- 62.5% increase in adjusted(1) earnings per share to 3.9p, giving dividend cover of 2.3x for the maintained 1.7p interim dividend
Key Financials
|
|
|
| £ million (except where otherwise indicated) |
|
|
| |
Six months ended |
Six months ended |
| |
30 June |
30 June |
| |
2009 |
2008 |
| |
(unaudited) |
(unaudited) |
| Results from continuing underlying(1) operations: |
|
|
| Revenue |
242.5 |
260.0 |
| Underlying(1) Operating Profit |
10.7 |
8.8
|
| Underlying(1) Profit before Tax |
4.5 |
4.4 |
| Adjusted(1) Earnings per Share (pence) |
3.9 |
2.4 |
| |
|
|
| Results after restructuring and other non-recurring items: |
|
|
| Operating (Loss)/Profit from Continuing Operations |
(6.8) |
6.2 |
| (Loss)/Profit before Tax from Continuing Operations |
(13.0) |
1.8 |
| Basic (Loss)/Earnings per Share from Continuing Operations (pence) |
(6.2) |
1.9 |
| Net Cash Flows from Operating Activities |
34.0
|
26.2 |
| Net Debt |
123.1 |
118.9 |
| Proposed Interim Dividend per Share (pence) |
1.7 |
1.7 |
| |
|
|
1Underlying operating profit, underlying profit before tax and adjusted earnings per share from continuing operations are stated before restructuring costs and other non-recurring items as set out in note 6 to the condensed consolidated financial statements.
Commenting on the results, Malcolm Coster, Chairman of Fiberweb plc, said:
"The Group has delivered a fourth consecutive period of steady margin, underlying profit and cash flow improvement against a difficult economic backdrop. The Board is very pleased with the performance of the Fiberweb team in their continuing initiatives to raise productivity and efficiency, to improve working capital performance further and to bring meaningful innovation to market.
The FitesaFiberweb joint venture has the potential to serve regional and global customers more effectively from its leading asset and technology base in the Americas and represents a very exciting development in the Group's evolution."
Daniel Dayan, Chief Executive of Fiberweb plc, added:
"Sharp reductions in raw material costs at the start of the year, strong pricing actions and efforts to increase manufacturing flexibility have mitigated the impact of significant market declines. The sharp volume reductions we have seen include the impact of significant product rationalisation as part of our margin improvement programme, and it is encouraging that there are now some signs of market volumes stabilising. Despite rising raw material costs during the first half, further reductions in working capital and growth in operating cash flow are reassuring, and have led to further reduction in net debt.
As no sustained volume recovery is yet apparent, we intend to continue improving our competitive position, striving for margin improvement through innovation and selective investment. We are now well-positioned to explore opportunities to develop our businesses further."
-ENDS-
Contacts
Fiberweb plc
(06.08.09) 0207 067 0700
Daniel Dayan, Chief Executive
Thereafter 0208 439 8594
Daniel Abrams, Chief Financial Officer
Weber Shandwick Financial
0207 067 0700
Terry Garrett/ Nick Dibden
Notes to Editors
Fiberweb plc (Fiberweb) is a leading international manufacturer of speciality nonwoven materials, with a total of 16 plants operating in eight countries across Europe, North America and Asia. The Group comprises businesses supplying tailored solutions to Industrial and Hygiene nonwovens markets. The Industrial businesses focus on growing niche markets in filtration, speciality construction and agriculture, with technologically differentiated products and strong brands. The Hygiene businesses focus on supplying leading producers of diapers, feminine hygiene and adult incontinence products with value-added and reliable nonwoven components. The Hygiene division is made up of Consumer Fabrics which supplies a full range of hygiene products from its spunbond and carded production technologies and Airlaid, which provides products principally for feminine care applications.