Interviews
News Flash
Unifi reports loss in Q2 results
20 Jan '06
3 min read
"While the damages caused by the hurricanes continued to affect raw materials and energy prices throughout the entire quarter, they were very pleased with their results for the quarter and the way that their operations handled the situation," said Bill Lowe, Chief Operating Officer and Chief Financial Officer for Unifi.
"The Company was able to meet its deliveries to customers in the quarter by successfully managing through the transportation and access issues associated with the supply of raw materials, and they offset the increases in raw materials and energy prices with a surcharge that was in effect throughout the December quarter.
In addition, through actions taken previously to reduce operating costs, they were able to increase their operating margins slightly on similar volume over the previous quarter ended September 2005."
Cash-on-hand at the end of the current December quarter was $85.0 million, down $5.7 million from the $90.7 million cash-on-hand at the end of the September quarter.
The Company funded the remaining $15.0 million investment in Yihua Unifi, which is the Company's joint venture in China, in the December quarter.
Brian Parke, Chairman and Chief Executive Officer of Unifi, said, "In China, they continue to focus on preparing the texturing equipment to produce yarn that meets Unifi quality standards, and they anticipate finishing this stage by the end of March.
They believe they will meet their quality standards in May of this year. Interest remains very high from customers and potential customers looking to fulfill orders for their Chinese operations.
They anticipate that the joint venture will achieve breakeven levels in the fourth fiscal quarter, and they will begin to build from this platform."
Unifi Inc adds value to the supply chain and enhances consumer demand for its products through the development and introduction of branded yarns that provide unique performance, comfort and aesthetic advantages.
"The Company was able to meet its deliveries to customers in the quarter by successfully managing through the transportation and access issues associated with the supply of raw materials, and they offset the increases in raw materials and energy prices with a surcharge that was in effect throughout the December quarter.
In addition, through actions taken previously to reduce operating costs, they were able to increase their operating margins slightly on similar volume over the previous quarter ended September 2005."
Cash-on-hand at the end of the current December quarter was $85.0 million, down $5.7 million from the $90.7 million cash-on-hand at the end of the September quarter.
The Company funded the remaining $15.0 million investment in Yihua Unifi, which is the Company's joint venture in China, in the December quarter.
Brian Parke, Chairman and Chief Executive Officer of Unifi, said, "In China, they continue to focus on preparing the texturing equipment to produce yarn that meets Unifi quality standards, and they anticipate finishing this stage by the end of March.
They believe they will meet their quality standards in May of this year. Interest remains very high from customers and potential customers looking to fulfill orders for their Chinese operations.
They anticipate that the joint venture will achieve breakeven levels in the fourth fiscal quarter, and they will begin to build from this platform."
Unifi Inc adds value to the supply chain and enhances consumer demand for its products through the development and introduction of branded yarns that provide unique performance, comfort and aesthetic advantages.
Unifi Inc
Popular News
Leave your Comments
Esteemed Clients
-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)")
