Culp issues 4Q warning, layoffs
May 3, 2005-- Home Textiles Today,
GREENSBORO, N.C. — Facing weakening demand for its U.S.-produced upholstery fabrics, Culp Inc. said it's laying off about 225 workers as it consolidates production, and warned of a deeper than expected fourth quarter loss.
Culp had earlier cautioned analysts and investors to expect a loss before restructuring charges in the range of 3 to 8 cents per share. But now the producer of mattress ticking and upholstery fabrics is forecasting a wider loss of 13 to 17 cents per share before one-time restructuring costs.
Culp will also combine its sales, design and customer service activities for two divisions, Culp Decorative Fabrics and Culp Velvets/Prints. As a result, two buildings in Burlington, with about 140,000 square feet of space, will be sold. The layoffs will total about 17 percent of the workforce in Culp's domestic upholstery fabrics business, the company said.