Wellman, Inc (NYSE:WLM) today reported financial results for the periods ended June 30, 2000.

Net earnings for the second quarter were $7m, or $0.22 per diluted share, compared with net earnings of $2.3m, or $0.07 per diluted share, for the same period in 1999 excluding the effect of a pre-tax restructuring charge. Net earnings for the first half of 2000 were $11.2m, or $0.35 per diluted share, as compared with net earnings of $4.1m, or $0.13 per diluted share, excluding the above charge and the cumulative effect of an accounting change.


($ Millions)
2Q00
2Q99
1H00
1H99
Sales
$285.5
$232.6
$559.8
$451.5
AMOUNTS EXCLUDING RESTRUCTURING AND ACCOUNTING CHARGE
Net earnings (loss)
$7.0
$2.3
$11.2
$4.1
Earnings (loss) per diluted share
$0.22
$0.07
$0.35
$0.13

AMOUNTS INCLUDING RESTRUCTURING AND ACCOUNTING CHARGE

Net earnings (loss)
$7.0
$(10.5)
$11.2
$(10.5)
Earnings (loss) per diluted share
$0.22
$(0.34)
$0.35
$(0.34)

Total sales increased 23% to $285.5 million in the current quarter and 24% to $559.8 million in the first six months of 2000, compared to the same periods in 1999, primarily due to increased volumes in the Company's U.S. PET resins business that resulted from new production capacity added in 1999. Higher earnings reflect, primarily, higher U.S. PET resins volumes, improved margins in the worldwide resins businesses and improved results in the Company's European fibers business, which was partially offset by decreased margins in the U.S. fibers businesses. Thomas M. Duff, Chairman and CEO, stated, ``We continue to generate improved earnings per share despite increased raw material and energy costs in 2000. Wellman's U.S. fibers business continues to face challenges from imports of fiber, fabric and garments. We are hopeful that the newly imposed import duties on Asian fiberfill will have a positive impact on our industry. The PET resins business continues to show improved capacity utilization and margin improvement.''

Wellman, Inc. manufactures and markets high-quality polyester products, including Fortrel® brand polyester textile fibers, polyester fibers made from recycled raw materials, PermaClear® brand PET (polyethylene terephthalate) packaging resins and EcoClear® brand PET packaging made from 100% recycled postconsumer PET beverage containers. The world's largest PET plastic recycler, Wellman utilizes a significant amount of recycled raw materials in its manufacturing operations.

Condensed Consolidated Statements of Operations (Unaudited)
(In millions, except per share data)
Quarter Ended
Six Months Ended
June 30,
June 30,
2000
1999
2000
1999
Net sales
$ 285.5
$ 232.6
$ 559.8
$ 451.5

Cost of sales

253.3
206.7
502.3
400.8
Gross profit
32.2
25.9
57.5
50.7
Selling, general & administrative expenses
16.6
17.5
33.5
36.2
Restructuring charge, net
---
19.0
---
19.0
Operating income (loss)
15.6
(10.6)
24.0
(4.5)
Interest expense, net
6.0
4.3
8.5
7.6
Earnings (loss) before income taxes and cumulative effect of accounting change
9.6
(14.9)
15.5
(12.1)
Income tax expense (benefit)
2.6
(4.4)
4.3
(3.4)
Earnings (loss) before cumulative effect of accounting change
7.0
($ 10.5)
11.2
($ 8.7)
Cumulative effect of accounting change, net of tax
---
---
---
($ 1.8)
Net earnings (loss)
$ 7.0
($ 10.5)
$ 11.2
($ 10.5)
Net earnings (loss) per common share - diluted:
Earnings (loss) before cumulative effect of accounting change
$ 0.22
($ 0.34)
$ 0.35
($ 0.28)
Cumulative effect of accounting change
---
---
---
($ 0.06)
Net earnings (loss)
$ 0.22
($ 0.34)
$ 0.35
($ 0.34)

Average common shares - diluted

31.9
31.2
31.9
31.2