Unifi Turns Toward Operating Profit
Home & Textiles Today Staff -- Home Textiles Today, February 4, 2008
Polyester and nylon yarn producer Unifi showed a dramatically reduced year-to-year loss in its second quarter results, even in the face of increased raw material costs, as new management streamlined operations and drove higher sales via its recent acquisition.
Including discontinued operations, Unifi reported a net loss of $7.7 million or $0.13 per share for the quarter ended Dec. 23, compared to a net loss of $18.2 million or $0.35 per share for the same period last year. The loss included pre-tax restructuring and severance charges of $5.9 million and a $2.2 million impairment charge as asset values were adjusted to account for the consolidation of physical plants.
Quarterly sales from continuing operations of $183.4 million were up 16.9% from $156.9 million in the year-ago period.
Bill Jasper, president and ceo, remarked on the retail weakness seen starting in December; he projected it would continue until a "slight" upturn toward the end of 2008.
Jasper noted that Repreve brand 100% recycled yarn has "gained traction" and Unifi's accelerated value-added, higher priced product strategy has been "further validated by the success of Repreve."
|Qtr. 12/23 ($millions)||2007||2006||% change|
a. Loss from continuing operations before income taxes.
b. Net income for the current quarter was negatively impacted on a pre-tax basis by $5.9 million in restructuring and severance charges and a $2.2 million impairment charge to adjust the carrying value of the company's assets resulting from the consolidation of production.
|Oper. Income (EBIT)||(13.6)a||(19.6)a||—|
|Per share (diluted)||(0.13)||(0.35)||—|
|Average gross margin||4.6%||0.0%||—|
|Oper. Income (EBIT)||(29.7)a||(30.3)a||—|
|Per share (diluted)||(0.28)||(0.54)||—|
|Average gross margin||5.4%||3.2%||—|
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