Coats, the world’s leading industrial thread manufacturer and a major player in the Americas textile crafts market has announced its unaudited H1 results, ended 30 June 2016.
The report reveals that a revenue of US$ 718 million has been maintained despite the lower sales growth in Q2 due to a tough market condition. As per the report, the operating profit went up 24% to US$77 million on an adjusted basis (up 44% reported) and the adjusted EPS went up 24% to 2.08c with reduction in tax rate offset mainly by unrealized losses on foreign exchange hedges and reported EPS of 1.90c (2015 continuing: 0.25c)
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While the growth in industrial profit was noted to be 27% that was carried out by the market share gains and cost productivity, it reported acquisition of Gotex and Fast React and mentioned that its last year’s acquisition, GSD Corporate Ltd is performing well. The company also adjusted free cash flow for last twelve months of US$82 million (June 2015: $75 million), primarily due to higher profitability.
The company is also going for settlement discussions with Trustees of the three UK pension schemes and is engaging with UK Pensions Regulator to achieve a resolution of investigations.
