Fibermark Announces Record Earnings for First Quarter 1998
BRATTLEBORO, Vt.--(BUSINESS WIRE)--April 28, 1998--FiberMark, Inc. (NYSE:FMK - news) today announced
record results for the quarter ended March 31, 1998.
Net earnings for the first quarter of 1998 were $4.3 million or $.54 per share (diluted), a 26% increase compared to the
comparable quarter of 1997, in which the company earned $2.7 million, or $.43 per share.
Net sales for the first quarter of 1998 increased by 35% to $80.0 million as compared to $59.4 million for the comparable
quarter of 1997. Sales in the filter products market increased by 140% to $26.6 million compared to $11.1 million in the first
quarter of 1997. $14.2 Million of this increase relates to the Gessner acquisition. Technical specialty sales increased by 7.6%
to $21.2 million compared to $19.7 million for the comparable period of 1997. Sales in this market were up $1.8 million due
to the Gessner acquisition. Sales in the durable specialties market increased by 32.6% to $19.1 million as compared to $14.4
million in the first quarter of 1997. Sales in the market were up by $5.4 million due to the Gessner acquisition. Sales in the
office products market decreased by 9.1% to $13.0 million compared to $14.3 million for the first quarter of 1997.
''Earnings grew during the first quarter due to income gained from the Gessner acquisition, fueled by strong sales for their
operations,'' according to Alex Kwader, President and Chief Executive Officer. ''We experienced some softening in sales in
certain markets during the early part of the first quarter, particularly in the Far East, but regained strength as the quarter
progressed,'' added Kwader. ''On the cost side, productivity in some of our U.S. facilities was affected by heavy trial activity
and capital projects associated with new products and product transfers,'' noted Kwader, ''while raw material costs were
stable.''
''Looking ahead, increases in pulp prices have been announced for June, but given demand levels, these increases may not be
sustainable,'' commented Kwader. ''On the sales side, as we move into the second quarter, orders have again softened
somewhat in some markets, but it is difficult to establish a clear trend given the erratic order levels we have experienced so far
this year. Finally, the labor contract at our Fitchburg facility expires April 30, and we are currently negotiating to establish a
new contract. While we hope to come to agreement, there can be no assurance that a work stoppage will not occur. Should a
work stoppage occur, we believe, based upon current facts, that this would not materially impact earnings, although there can
be no guarantee in this regard,'' explained Kwader.
FiberMark is a leading producer of specialty fiber-based materials meeting industrial and consumer needs worldwide.
Products cover a broad spectrum including filter materials for the automotive, heavy equipment, beverage and fast food
industries; cover and presentation materials for office and school supplies; specialty tape base and labels for medical tapes and
jeans labels; and technical specialties such as photographic and graphic arts materials, transformer paper, and base materials
for printed circuit boards, book covers and abrasives. The company, a leader in the use of recycled materials, currently has ten
facilities throughout the United States and Europe.
This press release contains forward-looking statements. Actual results may differ depending on the economy and other factors
discussed in the company's Form 10K filed with the SEC March 31, 1998.
Web address: fibermark.com. |
