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Coats threads together solid start to 2018
Thread maker Coats said group sales in the quarter to April 30 for the period grew 5% year-on-year on a constant currency basis, driven by a strong performance in its industrial business, which rose 6%.
Reported sales growth was 8% due to the dollar weakening against certain key trading currencies such as yuan, euro, Indian rupee and Mexican peso, Coats added.
Coats highlighted continued momentum in apparel and footwear, which was up 3%. The company said it expected to meet full year expectations.
The core thread business grew by 4% as key Asian markets performed strongly, Coats added, while the performance materials business grew by 19% year-on-year, with 4% organic growth and a 15% contribution from the acquisition of Patrick Yarn Mill.
Organic growth in performance materials was underpinned by continued double-digit growth in hi-tech end uses, such as flame retardant yarns, with some weakness in certain traditional end use segments in North America.
Crafts sales declined 4% on a constant currency basis due to tough conditions the North American business alongside the adverse impact in the period of the introduction of own-label handknitting products at a major customer which started in the second half of 2017.