Advanced Glassfiber Yarns Announces Second Quarter Earnings
August 21, 2001
Advanced Glassfiber Yarns LLC announced recently that its net sales decreased $13.6 million, or 19.8%, to $55.1 million in the three months ended June 30, 2001, from $68.7 million in the three months ended June 30, 2000. Had the Euro exchange rate versus the US dollar not declined by 6.0% year to year, second quarter of 2001 sales would have been $0.8 million higher. While sales to the specialty and construction markets remained stable, lower sales volumes to the company's other markets have more than offset the benefits of price increases implemented earlier this year. The 46.0% decrease in electrical sales was primarily a result of significant inventory adjustments in the electronics industry that began during the first quarter of 2001. Due to these inventory adjustments, the company does not expect sales to the electronics market to increase in the third quarter of 2001. In response to these market conditions, the company has reduced production schedules, furloughed production employees and focused on operating cost reductions.