Austell, GA, August 16--Propex Fabrics reported total net revenue that increased $10.3 million, or 6.5%, from $157.8 million in the three months ended June 30, 2004 to $168.1 million in the three months ended June 30, 2005.
This revenue increase is primarily due to an increase in North America furnishings net revenue of $10.1 million, along with net revenue increases of $3.0 million in Europe and $0.4 million in Brazil. These segment increases were partially offset by a $3.2 million revenue decrease in North America industrial fabrics.
Total net revenue increased $31.3 million or 10.5% from $298.3 million in the six months ended June 30, 2004 to $329.6 million in the six months ended June 30, 2005. This revenue increase is primarily due to an increase in North America furnishings net revenue of $20.7 million, along with net revenue increases of $5.8 million in North America industrial fabrics, $3.3 million in Europe and $1.5 million in Brazil.
Income before interest and taxes increased from $3.7 million in the three months ended June 30, 2004 to $13.7 million in the three months ended June 30, 2005. North America furnishings segment income increased from $6.9 million in the three months ended June 30, 2004 to $11.7 million in the three months ended June 30, 2005 due to higher unit net spreads, a favorable shift in product mix and decreased fixed manufacturing costs due to cost reduction and efficiency improvement activities.
North America industrial fabrics segment income improved from a $2.6 million loss in the three months ended June 30, 2004 to income of $0.7 million in the three months ended June 30, 2005 due to higher unit net spreads and decreased non-raw material manufacturing costs due to cost reduction and efficiency improvement activities. Europe segment income increased from a loss of $0.6 million in the three months ended June 30, 2004 to income of $0.4 million in the three months ended June 30, 2005.
This increase in segment income primarily resulted from a combination of higher unit net spreads and higher volumes. In addition, the company experienced lower selling, general and administrative costs in the three months ended June 30, 2005 as compared to the prior-year period.
Brazil segment income decreased from $1.9 million in the three months ended June 30, 2004 to $0.9 million in the three months ended June 30, 2005. The decrease in segment income was due, in part, to lower volume and higher manufacturing costs. These higher manufacturing costs resulted from higher resin costs and the 2004 capacity expansion of our Curitiba, Brazil facility.
Income before interest and taxes increased from $9.9 million in the six months ended June 30, 2004 to $24.2 in the six months ended June 30, 2005. North America furnishings segment income increased from $16.8 million in the six months ended June 30, 2004 to $20.9 million in the six months ended June 30, 2005.
The increase in the segment income was due to higher unit net spreads, a favorable shift in product mix, decreased fixed manufacturing costs due to cost reduction, efficiency improvement activities and the absence of a significant one-time repair expenditure, which occurred in the first half of 2004.
North America industrial fabrics segment income improved from a loss of $4.6 million in the six months ended June 30, 2004 to $1.4 million of income during the six months ended June 30, 2005.
The increase in the segment income was due to higher unit net spreads, decreased non-raw material manufacturing costs due to cost reduction, efficiency improvement activities and the absence of a significant one-time repair expenditure, which occurred in the first half of 2004. Europe segment income increased from a loss of $0.3 million in the six months ended June 30, 2004 to income of $0.2 million in the six months ended June 30, 2005.
