WELLMAN QUARTER NET OFF 31.4%
SHREWSBURY, N.J. — Hurt by “significantly reduced” profitability in worldwide fibers, Wellman Inc.’s fourth-quarter earnings dropped 31.4 percent to $5.9 million, or 19 cents a share, from $8.6 million, or 26 cents a share, a year ago.
Sales for the period ended Dec. 31 fell 6.1 percent to $248.6 million from $264.8 million.
For the year, earnings fell 64.2 percent to $26.5 million, or 81 cents, from $74 million, or $2.20. Sales were virtually flat at $1.1 billion.
The company partially attributed weak results to a net loss at the European PET resins operation, the result of a year-long decline in polyester fiber and PET resin selling prices. Dwindling polyester prices more than offset reduced raw materials costs and higher sales.
Wellman manufactures and markets polyester products, including Fortrel brand polyester textile fibers, polyester fibers made from recycled materials and PermaClear PET packaging resins. The company is the world’s largest plastics recycler.