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Home textiles manufacturers see red in 2001

PROFITABILITY MEASURES SALES OPERATIONS
COMPANY* NET INCOME x$000s % CHANGE '00-'01 % CHANGE '97-'01 RETURN ON SALES RETURN ON EQUITY NET SALES x$000s % CHANGE '00-'01 % CHANGE '97-'01 OP. INCOME x$000s % CHANGE '00-'01 OPERATING MARGIN GROSS MARGIN SG&A AS % OF SALES INVENTORY TURNS NET DEBT COVERAGE FISCAL YEAR END
*Companies are ranked by dollar volume of sales.
( ): Denotes loss
Source: Home Textiles Today market research
1. 2000 net income was $162.6 million and includes a $7 million pretax charge for a class action legal settlement.
2. 1997 net income of $79.6 million is restated and includes a $5.5 million pretax charge for asset value reductions and a $2.6 million pretax compensation charge for stock option exercises.
3. Restated.
4. Includes pretax restructuring and asset impairment charges of $5 million in 2001 and $109.2 million in 2000 and income tax benefits of $15.2 million in 2001 and $35.4 million in 2000.
5. 1997 net income was $78 million and includes $2.6 million in net income from discontinued operations and a $6.1 million after-tax gain on the sale of discontinued operations.
6. Includes pretax restructuring and asset impairment charges of $72.1 million in 2001and $67 million in 2000, pretax equity in income of joint ventures of $626,000 in 2001 and $10.3 million in 2000 and income tax benefits of $27.6 million in 2001 and $21.7 million in 2000. 2000 net loss was $527 million.
7. 1997 net income was $58.7 million and includes a $12.1 million pretax restructuring provision.
8. 2000 net income of $32.8 million is restated and includes a $793,000 restructuring credit.
9. 1997 net income was $30.8 million and includes a $7.5 million pretax restructuring charge and a $6 million net loss on divestitures.
10. 2001 and 2000 are 52 weeks; 1997 is 53 weeks and includes the results of Fieldcrest Cannon from Dec. 19, 1997.
11. After preferred dividends of $16.4 million in 2001 and $8.9 million in 2000; includes pretax asset impairment charges of $41 million in 2001 and $24.4 million in 2000, pretax reorganization charges of $31.4 million in 2001 and $19.4 million in 2000 and net losses from discontinued operations of $21.1 million in 2001 and $115 million in 2000. 2001 also includes a $10.8 million pretax restructuring charge. 2000 net loss was $271.3 million and also includes a $93.4 million income tax benefit.
12. 1997 net income was $7.2 million and is after preferred dividends of $85,000; includes $6.7 million in net earnings from discontinued operations and a $919,000 extraordinary charge.
13. 1997 sales are restated to reflect the blanket division as a discontinued operations.
14. Includes an $181.2 million pretax asset impairment charge, a $7.4 million pretax charge for plant realignment costs, a $1.8 million pretax special charge, a $5.4 million pretax foreign currency loss and a $25.8 million income tax benefit.
15. 2000 net loss was $4.3 million and includes a $549,000 pretax foreign currency loss, a $2.7 million income tax benefit and a $741,000 extraordinary gain.
16. 1997 net income was $15.4 million and includes a $452,000 pretax foreign currency exchange gain and a $12 million extraordinary charge.
17. Includes pretax restructuring and asset impairment charges of $71.4 million in 2001 and $28.6 million in 2000 and income tax benefits of $2.6 million in 2001 and $12 million in 2000. 2001 also includes an $11.5 million pretax impaired investment charge and a $2.9 million extraordinary charge. 2000 net loss was $21 million.
18. 2001 and 2000 are 52 weeks; 1997 is 53 weeks.
19. Includes an $18.1 million income tax benefit and $244,000 in equity in loss of joint venture.
20. 2000 net income was $10.8 million and includes $226,000 in equity in loss of joint venture.
21. 1997 net income was $13 million and includes a $243,000 extraordinary loss on the early extinguishment of debt.
22. After preferred dividends; includes pretax restructuring and asset impairment charges of $19.9 million in 2001 and $38.5 million in 2000, income tax benefits of $12.1 million in 2001 and $12 million in 2000, net losses from discontinued operations of $13.3 million in 2001 and $5 million in 2000 and equity in earnings of unconsolidated affiliates of $177,000 in 2001 and $2.7 million in 2000. 2000 net loss was $29.1 million.
23. 1997 restated net loss was $12.3 million and is after preferred dividends of $2.9 million; includes a $5.2 million pretax restructuring and asset impairment charge, a $7.6 million pretax loss from discontinued operations, a $3 million income tax benefit and $2.6 million in equity in earnings of an unconsolidated affiliate.
24. As of press time, Culp had not released its year-end results for the fiscal year ended April, 2002. Figures shown are from unaudited data based on the trailing 12-month period ended Jan. 27, 2002, and may not include all extraordinary charges, credits or income tax benefits. Annual data is not available to calculate percentage changes from 1997 data, return on equity, operating income, operating margin, gross margin, SG&A as a percentage of sales, inventory turns and net debt coverage.
25. Includes a $500,000 non-recurring after-tax charge for costs related to a potential acquisition.
26. Net income during the fiscal year includes a $25 million one-time gain on the forgiveness of debt, inflating return on sales and return on equity ratios. Excluding the one-time gain, return on sales was 1.7 percent and return on equity was 15.6%. During the prior year, the company recorded a loss of $73.6 million, and an operating loss of $24.8 million. As part of a restructuring, Crown Crafts sold its woven products division and its adult bedding business, resulting in a smaller sales base, compared to prior years.
Mohawk Inds. $188,592 16.0%1 137.0%2 5.5% 97.4% $3,445,945 1.2% 36.7%3 $327,157 3.2% 9.5% 24.2% 14.7% 4.7x 9.1% 12/31/01
WestPoint Stevens (27,348)4 4 5 -1.5 3.5 1,765,146 -2.8 6.5 120,335 -16.5 6.8 21.4 14.6 3.4 117.7 12/31/01
Burlington Inds. (91,101)6 6 7 -6.5 -358.0 1,403,905 -13.4 -32.8 12,539 -73.1 0.9 9.3 8.5 5.0 567.6 9/29/01
Wellman 8,389 -74.48 -72.89 0.8 1.4 1,081,279 -3.2 -0.2 27,490 -55.7 2.5 9.4 6.8 6.0 65.3 12/31/01
Pillowtex10 (239,119)11 11 12 -23.2 1,031,055 -18.1 172.213 (53,760) -5.2 3.7 8.9 4.3 -120.3 12/29/01
Polymer Group (247,561)14 15 16 -30.4 815,566 -5.4 52.4 27,221 -67.8 3.3 17.0 13.7 5.7 365.2 12/29/01
Guilford Mills (160,757)17 17 -25.0 -113.6 643,519 -21.0 -28.1 (51,462) -8.0 4.8 12.8 5.6 -49.1 9/30/01
Dan River18 (20,869)19 20 21 -3.3 -8.3 631,072 -4.9 32.5 556 -99.0 0.1 10.8 10.8 3.1 5,766.7 12/29/01
Cone Mills (40,596)22 22 23 -9.0 -46.9 449,908 -18.6 -30.33 4,674 -81.7 1.0 9.0 7.9 4.9 367.2 12/30/01
Culp24 (3,282) -0.9 374,552 -14.5 1/27/02
Quaker Fabric 9,54825 -12.8 -14.1 2.9 6.4 331,105 9.3 51.1 19,827 -8.5 6.0 21.2 15.3 5.7 20.7 12/29/01
Crown Crafts26 27,00226 26 245.926 23.126 210.726 117,591 -52.526 -63.226 5,056 26 4.3 22.0 17.7 5.1 1.4 3/31/02


Operating margin

operating income as a percentage of sales
RANKING THE OPERATIONS: Peering past the thicket of one-time charges that can skew the bottom line, eight companies last year recorded an operating profit. At least three squeezed costs thin and plumped up their margins to generate the highest level of operating profit for every dollar of sales, while at least three didn't.
The high
1. Mohawk Inds. 9.5%
2. WestPoint Stevens 6.8
3. Quaker Fabric 6.0
The low
1. Guilford Mills -8.0%
2. Pillowtex -5.2
3. Dan River 0.1


The bottom line

return on sales: after-tax profits as percentage of sales
DOWN TO THREE: In a striking statement on the state of the industry, only three of the 12 companies in this year's Report Card managed to make a profit in 2001. Not surprisingly, the list was led by Mohawk Industries, which has placed in the top three money-makers for the past three years.
The top
1. Mohawk Inds. 5.5%
2. Quaker Fabric 2.9
3. Wellman 0.8
The bottom
1. Polymer Group -30.4%
2. Guilford Mills -25.0
3. Pillowtex -23.2


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