BRUSSELS, May 15 - Belgian specialty textile group Sioen Industries (SIOE.BR) reported a 32.6 percent drop in first-quarter sales on Friday 15 May and painted a bleak picture for the rest of the year.

Yarn production at Sioen Industries

Sioen said total sales fell to 67.3 million euros from 99.8 million euros in the first quarter of last year, and said demand remained weak in certain divisions.

"The effects of the economic crisis which we have experienced since mid-2008 remained unchanged in the first quarter of the year and may well continue throughout 2009," it said in a statement.

"For 2009 our aim is to stand our ground, counting on good growth in the following years," it added.

Sioen's earnings were particularly hurt by its coating division, which makes coated fabrics used in tents, tarpaulins, swimming pool covers, protective clothing, mattress covers and more. First-quarter sales in this division dropped 38.9 percent.

The transportation, construction and publicity sectors, which all use products from Sioen's coating division, were hardest hit by the recession, the company said, with sales down 35 percent compared with 2008.

Sioen said all other product lines, including textile architecture, camping and transfer coating, were keeping sales at "acceptable levels".

The company's industrial applications division, which processes technical textiles and PVC film for heavy-duty use, also saw a sharp plunge, with sales down 37.2 percent. It was largely battered by the struggling transport market.

"The transport-related activities fell back sharply. In this division this impacted the production of truck tarpaulins and curtains and the cutting of airbags and car interior parts," Sioen said.

It added other products in the division remained more or less stable.

Sioen said its chemicals division, where sales fell 37.4 percent, was also struggling.

"Almost every market in which this division operates is confronted to a greater or lesser extent with the current economic recession," it said.

Its apparel division saw a drop of only about 0.1 percent. (Reporting by Anne Jolis, editing by Will Waterman)