Unifi to focus on internal resources for downstream initiatives
29 Jul '05
5 min read
The Company reported a net loss from continuing operations of $12.5 million or $0.24 per share for the June quarter compared to a net loss of $6.5 million or $0.13 per share for the prior year June quarter. The Company also reported a net loss from continuing operations of $20.8 million or $0.40 per share for the 2005 fiscal year, which is an improvement over the net loss of $44.7 million or $0.86 per share for the 2004 fiscal year.
Included in the results for the prior year June quarter and fiscal year is a pre-tax benefit, included in the cost of sales, of $11.4 million and $38.3 million, respectively, generated by the Company's manufacturing alliance with Koch Industries (previously DuPont), which was terminated as a result of the Kinston purchase.
Brian Parke, Chairman and CEO for Unifi, said, "Fiscal 2006 will be a year in which they leverage the success of their downstream selling and direct sourcing efforts to become a leading global supplier to U.S. and European brands and retailers.
They will also focus on the new downstream selling and direct sourcing opportunities that are available through Yihua Unifi Fibre Industry Company Limited, their joint venture in China with Sinopec Yizheng Chemical Fibre Company. The knowledge, expertise, and relationships to develop programs that can drive their products to market through existing channels now reside within the Company, and they have established a very successful business model.
This success, coupled with the development of sourcing infrastructure in the Americas, has lessened the need for the Company to maintain a separate sourcing business. As a result, Unifi will discontinue Unimatrix Americas and focus their resources internally to support their downstream initiatives around the globe.
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