Textile fabrics marketer Culp announces results of fiscal year ended May 1
21 Jun '05
8 min read
Culp noted, "As they announced in early May, they have taken very decisive steps to bring our U.S. manufacturing capacity in line with current demand trends. By further consolidating our manufacturing operations and merging the key functions for the two divisions within the upholstery fabrics segment, we are significantly reducing our operating costs and improving our domestic capacity utilization. We expect these restructuring actions to be substantially complete by August 2005. Going forward, annual cost savings are anticipated to be approximately $11 million, of which approximately $6 million will be in selling, general and administrative costs and approximately $5 million will be in fixed manufacturing costs. We are committed to taking whatever additional steps are necessary to keep our U.S. manufacturing capacity in line with demand and achieve profitable domestic operations.
"They continue to gain momentum with respect to our offshore produced business," added Culp. "Sales of upholstery fabrics produced outside of our U.S. manufacturing plants, which include the popular micro-denier suedes as well as fabrics produced at our China facility, were up 75 percent during the fourth quarter compared with the same quarter last year, and were up 100 percent for the year.
These fabrics accounted for almost 25 percent of Culp's overall upholstery fabric sales during the fourth quarter of fiscal 2005. Customer response has been favorable and we are excitcited about the innovative products that we are now able to offer. Our customers are receiving the same exceptional design and quality that always have been a trademark of Culp, but at better values. We believe Culp has an effective global sales and sourcing strategy in place to meet the changing demands of our customers, and we will continue to aggressively pursue additional opportunities to expand our market reach."
-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)")
