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Quaker Fabric declares Q1 financial results

20 Apr '06

2 min read

Upholstery fabric manufacturer Quaker Fabric Corporation reported net sales of $46.3 million, a net loss of ($4.1 million), and diluted and basic losses per share of ($0.25) for the three-month period ended April 1, 2006; compared to net sales of $59.2 million, a net loss of ($3.1 million), and diluted and basic losses per share of ($0.18) for the corresponding period of fiscal 2005.

Quaker's financial results for the first quarter of fiscal year 2006 include after-tax restructuring and related charges of $0.5 million and $0.1 million of plant relocation expenses. Excluding these charges and expenses, net loss for the first fiscal quarter of 2006 was ($3.5 million) or ($0.21) per diluted share.

Although our first quarter performance is still a long way away from what we are determined to achieve over the long-term, we are encouraged by the sequential improvement in our margins.

Biggest problem continues to be sales volume. Competition from imported leather, faux suede and woven fabric products remains intense and resulted in a 21.8 percent drop in our total revenues versus the comparable period of last year - with domestic and international net fabric sales for the quarter of $38.1 million and $6.6 million, down 17.6 percent and 8.2 percent, respectively. Net yarn sales, at $1.5 million, were down 73.1 percent, commented Larry A. Liebenow, Quaker's President and CEO.

Ongoing restructuring effort underway that is intended to restore the Company to profitability. The key elements of our plan include:

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