Quaker Fabric reports fiscal 2006 financial results

27 Feb '07

3 min read

"Pre-tax restructuring and asset impairment charges related to the execution of our restructuring plan accounted for $26.5 million, or more than half, of last year's $48.5 million operating loss. These charges are primarily non-cash and include the write-down to estimated realizable value of assets, including manufacturing plants and machinery and equipment, that we have put up for sale as part of our consolidation strategy," commented Larry A. Liebenow, Quaker's President and CEO.

"The market for upholstery fabric in the United States is continuing to experience unprecedented change, with imports, in a variety of forms, now representing a very large percentage of total consumption. For us, this meant a 29% drop in last year's domestic fabric sales and an 18% drop in export fabric sales."

"This fall-off in our sales outpaced the speed with which we were able to take costs out of our operations. Continued implementation of our restructuring plan is intended to bring our cost structure in line with projected revenues, and we believe that the steps we took last year to reshape and restructure the company represent progress toward returning the company to profitability," Mr. Liebenow said.

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Quaker Fabric Corporation, USA

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