Wellman Posts Bigger Loss on Record Sales
Furniture Today Staff -- Furniture Today, May 7, 2007
Resin manufacturer Wellman, Inc. reported a quarterly net loss of $26.9 million for the quarter ended March 31, compared to a net loss of $19.4 million for the same period one year ago.
Chairman and ceo Thomas Duff said, "Although we experienced disappointing overall results in the first quarter, we achieved record quarterly PET resin sales and volume due to strong demand."
Duff saidd, "Our sales volume benefited from delays in the start-up of some of the new capacity announced by our competitors and an improved trade balance which was helped by the differential between U.S. and Asian polyester raw material costs returning closer to historical levels."
Keith Phillips, cfo, said the plan is to "significantly reduce debt in the next 10 to 16 months" and boost profitability due to "improved PET resin margins and savings from our organizational restructuring."
Sales for the quarter were $354.5 million, up 8.7% from $326.0 million a year ago — and SG&A expense was cut 1.4% to $13.7 million.
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