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EXHIBIT 99.1
Press Release dated May 23, 2000
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Exhibit 99.1
Polymer Group, Inc. Issues Earnings Advisory for Second Quarter
For Immediate Release
Tuesday, May 23, 2000
[North Charleston, SC]--Polymer Group, Inc. (NYSE: PGI) announced today, based
on preliminary estimates, it currently expects second quarter 2000 earnings to
be lower than consensus estimates. PGI currently expects second quarter earnings
per share to be between breakeven and $0.04. Second quarter cash flow, or
EBITDA, is currently expected to be in the range of $40 million to $41 million.
The Company expects many of the factors impacting the second quarter to continue
into the third quarter.
Factors affecting or expected to affect second quarter earnings include:
. Continued curtailments in orders for selected high margin products from
certain consumer products customers
. Timing variances between raw material price increases and the pass-through
of those increases to contracted customers
. Market conditions affecting the Company's ability to pass-through raw
material price increases to certain commodity segments
. Increased interest expenses caused by interest rate increases and increased
indebtedness
. Negative impact of foreign exchange rates predominantly in Europe
. Period expenses associated with two new APEXTM lines.
Jerry Zucker, Chairman, President and Chief Executive Officer, commented, "We
are very disappointed to report lower than expected earnings expectations. We
are examining all aspects of the business in order to fill underutilized
capacity which had been scheduled for certain higher margin products. We are
examining all aspects of
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our cost structure and we are moving forward with qualifying new suppliers for
some raw materials."
A conference call, hosted by Jerry Zucker, will be held at 11:00 AM Eastern
Time, Wednesday May 24th, 2000. To listen to this call, please dial 1-800-553-
5275. A replay of the call will be available from 3:00 PM Eastern Time May 24th
until 11:59 PM Eastern Time May 28th. To access the replay, please call 1-800-
475-6701 and enter code 520236.
Polymer Group, Inc., the world's third largest producer of nonwovens, is a
global, technology-driven developer, producer and marketer of engineered
materials. With the broadest range of process technologies in the nonwovens
industry, PGI is a global supplier to leading consumer and industrial product
manufacturers. The Company employs more than 4,500 people and operates 25
manufacturing facilities throughout the world. Polymer Group, Inc. is the
exclusive manufacturer of Miratec(R) fabrics, produced using proprietary
advanced laser technologies, which the Company believes have the potential to
replace traditionally woven and knit textiles in a wide range of applications.
Miratec(R) is a registered trademark of Polymer Group, Inc.
Except for historical information contained herein, the matters set forth in
this press release are forward-looking statements that involve certain risks and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. Factors that may cause actual
results to differ from those indicated in forward-looking statements can
include, but are not limited to, the following: (i) increased competition in
markets in which the Company competes, (ii) increased costs, (iii) changes in
conditions of the general economy and (iv) the Company's substantial leverage
position. Investors and other readers are directed to consider the risks and
uncertainties discussed in documents filed by Polymer Group, Inc. with the
Securities and Exchange Commission, including the Company's Registration
Statement on Form S-4, declared effective on July 1, 1998.
For further information, please contact:
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Robert Johnston
Investor Relations
Polymer Group, Inc.
P.O. Box 5069
North Charleston, South Carolina, 29405
Telephone No.: (843) 566-7293
E-mail: [email protected] Web: www.polymergroupinc.com
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