Unifi Looking For Solutions
October 31, 2005-- Home Textiles Today,
Greensboro, N.C. —Unifi Inc. is exploring strategic business alternatives — including a potential merger or sale of the company, and the restructuring of its outstanding debt — to improve shareholder value.
This news comes on the heels of a weak first quarter that posted a net loss of $5.7 million or 11 cents per share in net income from continuing operations, compared with a net loss of $1.2 million or 2 cents per share during the same period last year.
Net income was a net loss of $3.1 million or 6 cents per share compared with a net loss of $22.6 million or 43 cents per share during last year's first quarter. Included in the current September quarter is a $2.8 million gain from the sale of the company's property in Ireland.
“We faced many challenges this quarter, including certain key customers adjusting inventory during the summer months and the unexpected interruption of our supply chain of raw materials from the impact of both Hurricane Katrina and Rita, which has continued into October,” said Bill Lowe, chief operating officer and chief financial officer. “Although we are still assessing the long-term effect of polyester ingredient supply and the increases in raw material and energy costs on the profitability of our business for the remainder of the fiscal year, we have taken certain measures to guarantee continuity of production to assure our customers of a supply of product.”
Aside from potential merger, sale or restructuring of debt, Unifi's management is studying other alternatives, including: growing the business by expanding within the textiles industry, including researching low-cost locations worldwide; and expanding in non-textiles related businesses.
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