Unifi cuts forecast as yarn inventories back up
December 8, 2006,
Greensboro, N.C. – Yarn producer Unifi, Inc. has revised its expectations downward for the financial results for the quarter ended December 2006, from a previous forecast of $10 million to $12 million EBITDA to a new projection of “less than 50% of this forecast.”
Lowe said, “Although raw material prices have declined since a high in September, we are still working off the higher priced inventory as this business unit is on the first-in-first-out method for inventory, which has had an additional negative effect on earnings, and the low volume has the additional effect of lengthening this process.”
“Our customers tell us that we have not lost market share in this period, but that the demand from retailers has slowed some business,” Lowe emphasized.
Related Content By Author
The Countdown to the ICON Honors Continues featuring Christophe Pourny