Cone Mills posts 3Q net loss of $5.7M
By Furniture Today Staff -- Furniture Today, November 5, 2001
GREENSBORO, N.C. — Fabric supplier Cone Mills reported a net loss of $5.7 million in the third quarter, but said the loss before "strategic initiatives and special items" was only $776,000 or 7 cents per share.
That was better than the 12 cents per share loss that analysts had expected.
The company also announced that it is abandoning its khaki business, which has been losing $1 million a quarter, and that its plan of business changes is essentially complete and ahead of schedule.
Strategic initiatives and special items include a loss on the sale of its John Wolf converting business to Richloom in August, operating results for John Wolf and khaki, and a gain on an interest rate swap. Including such items, Cone reported a loss of $4.6 million, or a loss of $5.7 million after preferred dividends.
Net sales from continuing operations were $113 million for the third quarter. Excluding the operations being exited, sales of the core businesses were $106.9 million, down 25% from the comparable period last year.
John Bakane, chief executive officer, said that each of the three remaining core businesses — denim, Carlisle commission finishing and Cone Jacquards — is "defensible in this hemisphere, operates in a leadership position and is profitable. This is the first time since mid-1995 that all of the company's core lines of business are profitable on an operating basis."
| Cone Mills | |||
|---|---|---|---|
| Owns Carlisle Finishing and Cone Jacquards | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| 13 weeks ended 9/30 | 2001 | 2000 | Change |
| Sales | $113,034,000 | $158,702,000 | (28.8%) |
| Operating income | 3,029,000 | 7,434,000 | (59.3%) |
| Net income | (a)(5,677,000) | (b)389,000 | — |
| Earnings per share | (0.22) | 0.02 | — |
| 39 weeks ended 9/30 | 2001 | 2000 | Change |
| Sales | $384,162,000 | $449,514,000 | (14.5%) |
| Operating income | (5,508,000) | 19,746,000 | — |
| Net income | (a)(37,091,000) | (b)(164,000) | — |
| Earnings per share | (1.45) | (0.01) | — |
| (a) After preferred dividends; includes pretax charges for restructuring and asset impairment of $200,000 in the 2001 13 weeks and $19.9 million in the 2001 39 weeks, income tax benefits of $43,000 in the 2001 13 weeks and $11.7 million in the 2001 39 weeks and net losses from discontinued operations of $4.4 million in the 2001 13 weeks and $7.2 million in the 2001 39 weeks. The 2001 13 weeks also includes $88,000 in equity losses of unconsolidated affiliates and the 2001 39 weeks also includes $484,000 in equity earnings of unconsolidated affiliates. (b) After preferred dividends; includes equity earnings of unconsolidated affiliates of $932,000 in the 2000 13 weeks and $2.2 million in the 2000 39 weeks and net losses from discontinued operations of $623,000 in the 2000 13 weeks and $1.8 million in the 2000 39 weeks. | |||
