Rising costs lower Avgol's Q1 profit

Rising production costs narrowed Avgol’s operating income in the first quarter of 2010. The company, which makes nonwoven textiles for diapers and wet-wipes, reported sales of $63.8 million for the first quarter of 2010, up 17% against the parallel quarter. But its cost of sales rose to 79% of revenues, compared with 70% in the parallel quarter. That reduced its operating profit by 33%, to $7.4 million, the company reported yesterday. Net profit attributable to shareholders dropped 34% against the parallel quarter, to $3.5 million. Cash flow in the quarter came to $9 million, down 42% against the same period of 2009. (Lior Zeno )

Comments are closed.