Home / Knowledge / News / Company / Operational efficiency up from 60% to 85%, Tefron

Operational efficiency up from 60% to 85%, Tefron

19
Aug '10
Tefron Reports a Positive EBITDA for the Second Quarter of 2010

Second Quarter Highlights:<br>
• Tefron reports a positive EBITDA for the second quarter of 2010, as compared to a negative EBITDA of about $3.3M for the corresponding quarter last year.
• Net loss of approximately $2M as compared with net loss of approximately $4.6M for the corresponding quarter last year.
• Decrease of $3.4M in operating loss for Q2/10 as compared with second quarter last year. This decrease was achieved primarily due to significant improvements in key operational measures;`On Time Delivery` to customers and reduction in production waste, which led to increased efficiency and yield. In addition, significant savings were achieved in fixed costs.
• Operational efficiency increased from 60% to 85%, while increasing the Company's production capacity.
• The Company began receiving orders from new strategic customers in the U.S.

Commenting on the results, CEO Amit Meridor, said: "During the first quarter of the year, Tefron began implementation of its Turnaround Plan, for an immediate improvement of the operating results and returning to a momentum of growth. Tefron exceed the Turnaround plan goals set for the second quarter. The Company demonstrated substantial operational improvements, which led to a reduction in losses and to a positive EBITDA for the quarter, as compared to a negative EBITDA of approximately $12M in 2009.

“While enhancing collaboration with current customers, the Company has recently begun to supply to new customers and is also operating toward extending its swimwear development and production activities to the American and European markets."

Meridor further added that: "We are investing great efforts in regaining customer confidence in Tefron and our operational improvements enable us to be both efficient and competitive. Second quarter results demonstrate Tefron's ability to introduce changes in the Company's cost structure within a short period of time, improve customer service and create a healthy company. We expect the significant changes implemented during the first half of the year and those to be applied in the second half, shall enable Tefron to regain and expand its customer base."

Incoming Tefron Chairman, Arnon Tiberg, commented: "Tefron took on the challenge of regaining a major position in the global textile industry as a leading player in its field, while implementing an aggressive long term recovery and growth plan. The Company continues to operate toward improving all of the parameters identified with its production floor, such as improving On Time Delivery to customers and reduction in production waste. In addition, the Company continues cutting down cost structure in terms of personnel, rent and transportation expenses."

Tiberg further added that: "In recent months, we have strengthened our top management with leading textile and fashion managers and the results were forthcoming. The Company board has complete confidence in management and its ability to achieve improvements in framework of the Turnaround plan."


Must ReadView All

Pic: Shutterstock

E-commerce | On 3rd Mar 2021

Digital e-com rules may negatively affect developing

Many digital rules being framed by a group of 86 countries under the...

Pic: Shutterstock

E-commerce | On 3rd Mar 2021

Jordan govt urged to impose tax on online purchases from

Asad Qawasmi, who represents the garment and jewellery sector at the...

Pic: Huntsman Textile Effects

Textiles | On 3rd Mar 2021

Huntsman, Sciessent partner for microbe & odour resistant

Huntsman Textile Effects, a Singapore-based provider of high-quality...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

The budget will give major impetus to textile and apparel consumption

Top executives, Textile industry

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Vidhyaa Shankar. S, A Ganapathi Chettiar

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Yogesh Kanani,

Yogesh Kanani

Incorporated in 1999, Purani Textiless Private Limited is a leading...

Lukas Hartmann,

Lukas Hartmann

Intex Consulting GmbH is a completely integrated enterprise resource...

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Larry L Kinn, Suominen Corporation

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eric Scholler, Groz-Beckert

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

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

Leave your Comments


February 2021

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


Advanced Search