Fiberweb profit falls as costs increase

Thu Aug 4, 2011 3:02am EDT

* H1 profit down more than 56 pct

* Sees FY ahead of last year

* Cuts interim dividend by 41 pct

Aug 4 (Reuters) – Britain’s Fiberweb Plc posted a lower first-half profit, hurt by sharply increasing raw material prices, but the non-woven fabrics maker said it expects full-year performance to be slightly ahead of last year.

“Steady volume development is expected in the second half… Margins will benefit from recent falls in raw material prices,” the company said in a statement.

Fiberweb, whose non-woven materials are used in products ranging from baby diapers to industrial wipes, cut its interim dividend to 1 pence per share from 1.7 pence per share in the previous comparable period.

For the half year ended June 30, the company reported an underlying pretax profit of 3 million pounds ($4.9 million), compared with 6.9 million pounds a year ago.

Revenue rose 10 percent to 255.5 million pounds, helped by acquisitions.

Shares of the company closed at 54.75 pence on Wednesday on the London Stock Exchange. ($1 = 0.609 British Pounds) (Reporting by Suzannah Benjamin in Bangalore; Editing by Joyjeet Das)

Source:  www.reuters.com

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