Intertape Polymer posts lower Q4 earnings

MONTREAL ― Intertape Polymer reported that revenues decreased 2.5% to $195.7 million, primarily due to lost sales resulting from the South Carolina flood. Gross margin increased to 23.4% from 18%, attributed to an increase in the spread between selling prices and raw material costs, and an improvement in manufacturing performance. The floods had a negative impact of approximately $9 million of lost sales, approximately $3 million of lost gross profit and adjusted earnings, as well as $1.5 million of manufacturing facility closure, restructuring and other related charges. Net earnings increased $11.4 million to $17.5 million, primarily due to an increase in gross profit and a decrease in income tax expense, partially offset by an increase in variable compensation expense, and the impact of the flood.