Fiberweb swings to a loss after restructuring costs

Non-woven industrial materials group Fiberweb dropped on Friday after its profit and loss account has swung into the red and revenues slumped.

Total revenues fell from £269.2m to £151.5m in 2010, while the firm reported a pre-tax loss of £7.4m, compared with a profit of £2.5m the year before. The 2011 results were affected by restructuring costs mainly due to a cost reduction programme as a result of the Hygiene Business disposal.

The firm, whose products are used in a variety of products such as water filters, construction products and protective clothing, said that the recently-disposed Hygiene Business is now classified as a discontinued operation and not included in its continuing figures.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

On a positive note, the Hygiene disposal for $286m, which was completed on December 30th, has achieved a much-strengthened balance sheet which is now in a net cash position of £10m.

The firm also reported that margins were affected by delays in commission a new production line in Berlin as well as some increases in other input costs.

Continuing trading volumes grew by 3% year-on-year in 2011 but numbers in southern Europe and in construction in North America being weaker than expected.

The Technical Fabrics division felt a £3m charge relating the the temporary disruption to sales and additional operating costs during the planned closure of a plant at Knigswinter, Germany, as well as the new production line in Berlin.

Shares were down 12.27% at 48.25p by 08:33.