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Coats Group Exits US Yarns Business to Boost Profitability

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Coats Group Exits US Yarns Business to Boost Profitability

Coats Group plc ( (GB:COA) ) just unveiled an update.

Coats Group plc has announced its strategic decision to exit the US Yarns business within its Performance Materials division, following a review of its Americas Yarns operations. This move, which includes the closure of the Kings Mountain, North Carolina facility, is expected to enhance the company’s EBIT margins and allow it to focus on more profitable areas of its portfolio. The exit is anticipated to be completed by Q2, generating a modest cash inflow after closure costs, and reflects Coats’ strategy to streamline operations and concentrate on growth in other segments.

More about Coats Group plc

Coats Group plc is a global leader in the manufacturing of industrial threads and structural components for apparel and footwear, renowned for its innovative performance materials. Headquartered in the UK, Coats is a FTSE250 company and a constituent of the FTSE4Good Index, with a 2024 revenue of $1.5 billion. The company serves a diverse range of industries including apparel, footwear, automotive, telecoms, personal protection, and outdoor goods, operating in over 50 countries with a workforce of more than 16,000. Coats is committed to sustainability and innovation, participating in the UN Global Compact and aiming for net-zero emissions by 2050.

YTD Price Performance: -17.90%

Average Trading Volume: 2,731,624

Technical Sentiment Signal: Hold

Current Market Cap: £1.26B

See more data about COA stock on TipRanks’ Stock Analysis page.

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