Coats, the world’s leading industrial thread manufacturer and a major player in the Americas textile crafts market, has announced its unaudited results for the year ended 31 December, 2016. During the period under review, the manufacturer’s revenue surged 2 per cent on a CER basis to US $ 1,457 million (down 1 per cent reported).
Continued solid growth of 4 per cent in Industrial Division achieved through market share gains, offsetting 8 per cent decline in Crafts Americas, the company said. Adjusted operating profit also zoomed 16 per cent to US $ 158 million (up 13 per cent reported) through market share gains, cost productivity, controlled overheads and raw material price benefits. Additionally, the company acquired Gotex and Fast React; both performing well and ahead of management expectations, resulting in US $ 3 million operating profit contribution in the year 2016.
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Rajiv Sharma, Group Chief Executive, Coats said, ‘Coats delivered a strong performance in 2016 with operating profit growth of 16 per cent, despite challenging market conditions. Uncertainty, volatility and pricing pressures characterized 2016. We enter 2017 on a solid footing however remain cautious about market conditions. We expect to continue to deliver growth in line with management’s expectations through our initiatives to deliver market share gains, productivity improvements and tight cost control. We will also continue to focus on cash flow generation in order to allow us to continue to reinvest in organic and inorganic growth opportunities.”