Czech Pegas Nonwovens says H1 net profit falls 15.5% on unrealised forex gains.

By bne IntelliNews August 31, 2012
Czech non-woven textiles maker Pegas Nonwovens said its net profit for the first half of 2012 fell by 15.5% y/y to EUR 9.1mn mainly due to lower unrealised foreign exchange gains. In the second quarter alone, the company's net profit plunged 89.8% y/y to EUR 0.4mn, Pegas said in a statement on its website. The company's EBITDA (earnings before interest, taxes, depreciation and amortisation) increased 15% to EUR 17.6mn helped by higher output thanks to a new production line. Pegas maintained its outlook for full-year EBITDA growth of between 5% and 15%, well above the 2.4% rise registered in 2011. The company said its financial results in the second quarter of 2012 were negatively affected by a growth in raw material prices but since May polymer prices started to decline and Pegas expects this fact to have a positive effect on its financial results in the third quarter of 2012. The company's revenue rose 11.7% y/y to EUR 92.3mn in H1 as the new production line, which was put into operation in the second half of 2011, boosted volumes of sold production. Pegas produces non-woven textile mainly for hygienic products, construction and medical industries. The company operates two plants in the Czech Republic and plans to invest between EUR 55mn and EUR 60mn in a new production plant in Egypt, which will be the company's first production unit abroad. The plant is planned to start operations in the second half of 2013.

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