Unifi posts net loss in 2Q
By Furniture Today Staff -- Furniture Today, February 16, 2004
GREENSBORO, N.C. — Yarn supplier Unifi reported a net loss of $9.2 million for the quarter ended Dec. 28 and said it is facing more cost-cutting measures.
The loss in the fiscal second quarter compares with a loss of $2.2 million in the same period a year earlier. For the first half, the net loss was $13.8 million compared with net income of $2.2 million in the fiscal 2003 first half.
Sales were down 9% for the quarter to $183.7, and down 14.1% for the six months to $363.9 million.
Unifi, which supplies textured yarn for home furnishings and other industries, cited "inordinate curtailment in production in the month of December" resulting from changes in product mix and the continued increase in imported textiles and softness in the U.S. textile industry.
"Despite the fact that we have reduced our employment base from approximately 5,500 to approximately 4,100 since December 2002, it is obvious that with the continued pressure on pricing, we will be taking further action to reduce our operating costs," said Brian Parke, chief executive officer. "In addition, we remain committed ... to counterbalance this trend and to completing our acquisition in China."
Unifi is working on forming a joint-venture company with Kaiping Polyester Enterprises Group in Guangdong, China, for the production and sale of polyester and nylon products.
