Textile fabrics marketer Culp announces results of fiscal year ended May 1
21 Jun '05
8 min read
In addition, they are in the process of installing new weaving machines that are faster and more efficient than the equipment they will replace. We believe these changes in our manufacturing operations will significantly enhance our globally competitive cost structure, and we look forward to the opportunity to extend our leadership position in the mattress ticking business."
Upholstery Fabrics Segment
Sales for this segment were $47.2 million in the fourth quarter of fiscal 2005, an 18.6 percent decline compared with $58.0 million in the fourth quarter of fiscal 2004. Overall, sales for the quarter continued to reflect the lower demand industry-wide for U.S. produced upholstery fabrics that Culp has experienced throughout fiscal 2005.
The current consumer preference for leather and suede furniture and customer selection of other imported fabrics, including cut and sewn kits, are driving this trend. These results also reflect operating constraints related to ongoing restructuring activities in the decorative weaving operations.
Operating loss for this segment was $2.0 million, compared with operating income of $2.8 million for the same period a year ago. For the fourth quarter, margins were affected by significant manufacturing variances related to restructuring activities, continued underutilization of domestic capacity and higher raw material costs.
Culp noted, "As they announced in early May, they have taken very decisive ts.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
