Home / Knowledge / News / Textiles / Unifi announces second quarter results
Unifi announces second quarter results
06
Feb '09
Unifi Inc. released preliminary operating results for its second fiscal quarter ended December 28, 2008.

Net sales for the current quarter were $125.7 million, which represents a $57.7 million decrease from net sales of $183.4 million for the prior year December quarter. Net sales were negatively impacted by the reduced demand for the Company's products caused by sharp declines in consumer spending and compounded by the related effect of excess inventory across the respective supply chains.

In addition, the prior year quarter contained approximately $7 million of sales from its commodity POY facility in Kinston N.C., which ceased operations during that quarter.

For the December quarter, loss from continuing operations before taxes was $8.7 million and net loss was $9.1 million or $0.15 per share, which compares to a loss from continuing operations before taxes of $13.6 million and a net loss of $7.7 million or $0.13 per share in the prior December quarter. The prior year quarter included the negative impact of $6.3 million in restructuring and severance charges and $2.2 million of impairment charges.

The decrease in current quarter results was predominately driven by the decreased demand and higher priced raw material purchased from the first fiscal quarter working its way through the Company's inventory.

"Retail sales in our primary end-use segments: apparel, home furnishings and automotive, were all down dramatically in the quarter, resulting in a significant buildup of inventory throughout the supply chain," said Ron Smith, Chief Financial Officer for Unifi.

"In response, brands and retailers cancelled orders and fabric mills curtailed production suddenly during the fourth quarter, which dramatically reduced demand for our products. Based on current retail sales estimates, we expect it to take an additional four to six months for this built-up inventory to completely work through the supply chain."

"Accordingly, we anticipate continued pressure on our sales throughout the second half of the fiscal year. We do, however, expect conversion margins and cost to improve during the second half of the fiscal year, and we anticipate continued strength in our sales to the CAFTA region as more apparel production is shifted there from Asia to reduce the overall sourcing cycle."

Net loss for the first half of fiscal 2009 was $9.7 million or $0.16 per share compared to a net loss of $16.9 million or $0.28 per share for the same prior year period. Net sales for the first half of fiscal 2009 were $294.7 million compared to net sales of $353.9 million for the prior year period, which included approximately $19 million of sales from our now closed Kinston N.C. facility.

Cash-on-hand at the end of the December 2008 quarter was $12.6 million, a decrease of $7.8 million from the cash-on-hand at the end of the September 2008 quarter, as $6.8 million in proceeds from asset sales were offset by working capital uses, the semi-annual note interest payment and the currency effect on cash in Brazil. Total cash and cash equivalents at the end of December, including restricted cash, were $32.4 million compared to $47.7 million at the end of September. At the end of December, long-term debt was reduced to $193.7 million from $196.5 million as of the end of September.


Must ReadView All

Apparel/Garments | On 23rd Sep 2017

AAFA urges negotiators to preserve TPLs in NAFTA

The American Apparel & Footwear Association (AAFA), an alliance of...

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

PKR 690.65-mn budget for Pakistan Cotton Committee

The Pakistan Central Cotton Committee (PCCC) recently approved a PKR...

Interviews View All

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search