Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Fiberweb Acquires Control Of Terram India; Sees Improved Like-for-like Sales

Fiberweb Plc. (FWEB.L) announced that contracts have been signed for Fiberweb Geosynthetics to invest 2 million pounds to increase its stake from 26% to 65% in its existing geotextiles joint venture in Gujarat, India.

Terram India, based in a duty-free zone near Mundra, fully commissioned its manufacturing operations during 2012, utilising a Terram geotextile spunbond line relocated from Fiberweb's Terram operations in the UK.

The unique Terram spunbond process produces geotextiles and has long been a key component in many leading geocomposites, being utilised as a trusted element in road, rail and building foundations, as well as many other construction projects.

The investment will enable expansion at Terram India, including the addition of value-added geocomposite manufacturing capability. On completion, Fiberweb will consolidate 3 million pounds of debt associated with Terram India.

The transaction is expected to be earnings-neutral in 2013 and to be accretive in 2014. Completion is expected during July 2013.

In addition, Fiberweb confirmed that trading continues to develop as expected. Operational efficiencies, cost reduction and mix improvement are delivering growth in both operating profit and margin, despite weaker sales against a strong comparative period. Working capital remains under control, cashflow continues to be strong and the Group has made progress towards its medium-term financial targets.

A specialised hygiene line was sold to Fitesa as planned at the end of June for 3 million pounds, which will reduce second half sales by around 3.5 million pounds.

The company expects an improved like-for-like sales performance in the remainder of the year, with growing output of construction products and the impact of enhancements to the product range in filtration and technical specialties.

The company expects to announce its first-half results on 2nd August 2013.

Register
To receive FREE breaking news email alerts for Fiberweb Plc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
In a surprise move, the Senate voted Tuesday to make changes to an important House highway funding bill, raising questions about whether the legislation will receive final approval before lawmakers leave town for the August recess. Stocks have given back some ground over the course of the trading day on Wednesday after failing to sustain an early upward move. The choppy trading reflects uncertainty ahead of a highly anticipated announcement from the Federal Reserve. After reporting a notable contraction in U.S. economic activity in the first quarter, the Commerce Department released a report on Wednesday showing that gross domestic product rebounded by more than anticipated in the second quarter.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.