Burlington House in Minor Role as ITG Repositions
May 7, 2007-- Home Textiles Today,
Diversified global textiles manufacturer International Textile Group (ITG) saw a decline in its home textiles division in 2006, and the corporation overall reported a loss of "approximately $50 million," but executives said it is all part of the plan.
Wilbur Ross, chairman of ITG, said, "Our year-end results reflect the transition of the company, and we consider this loss in 2006 an investment in the future of ITG. We would expect to incur losses into the first half of 2007 as our expansion projects reach completion."
Sales for the interior furnishings division, which includes Burlington House, Cone Jacquards, the Dorma luxury bedding brand and other units, were $36.4 million for the year ended Dec. 31, 2006, or 5.0% of the ITG total volume of $720.9 million.
Pro forma 2005 revenues for the interior furnishings unit were $39.8 million, a year-to-year drop of 8.5% from 2005 to 2006.
Since last year's merger with a major automotive airbag maker, that safety division has become second only to ITG's main business of supplying denim and other apparel textiles. Capital investments have focused on building apparel plants in China, Vietnam, Mexico, and Nicaragua.
ITG said its board of directors last December "committed to a plan to exit certain Burlington House businesses in the interior furnishings segment and instructed management to seek potential buyers," referring to facilities that produce "decorative fabrics and mattress fabrics as well warps and package-dyed yarns."
The first move was the January sale of its discontinued mattress fabric line to Culp Inc. for $2.5 million cash and Culp shares worth about $5.3 million.
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