Bloomberg News

Pegas Third-Quarter Ebitda Gains 17% as Polymer Prices Fall

November 24, 2011

(Updates with guidance forecast in third paragraph.)

Nov. 24 (Bloomberg) -- Pegas Nonwovens SA, a Czech maker of textiles, said earnings before interest, taxes and depreciation rose 17 percent in the third quarter as a decline in polymer prices boosted profitability.

Ebitda reached 10.8 million euros ($14.45 million), while revenue advanced 7.9 percent to 43.7 million euros for the three months ending Sept. 30, the Znojmo, Czech Republic-based company said in a release on its website today.

The company confirmed its full-year Ebitda guidance “at the lower end of the previously announced range” and said it remains “positive” about the outlook for 2012. A manufacturing plant in Egypt will be launched in the second half of 2013.

“We registered some softening of the nonwovens textiles market in the fourth quarter, however there is no indication currently that this will be other than a short-term effect,” the company said.

Polymer prices rose through the first half of the year and then began declining “significantly,” it said, noting that prices in the third quarter corresponded to levels from the year-ago period.

Pegas Nonwovens fell 0.9 percent to 431 koruna in Prague as of 9:12 a.m. The shares have lost 7.9 percent this year.

Net income fell 33 percent to 5.5 million euros in the third quarter on currency changes during the period.

--Editor: James M. Gomez

To contact the reporter on this story: Douglas Lytle in Prague at dlytle@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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