"Building sales continues to be one of our biggest challenges. Competition from imported fabric rolls and kits remains intense, and the second quarter of this year saw a 37.8% drop in our total revenues versus the comparable period of last year - with domestic and international fabric sales for the quarter of $34.9 million and $6.4 million, down 30.8% and 23.4%, respectively. Net yarn sales, at $1.6 million, were down 84.0%," he said.
"Since the end of the first quarter, we have also made considerable progress in further developing the strategically important, offshore sourcing arrangement we put in place earlier this year with Zhongwang, including assisting Zhongwang with the installation of state-of-the-art finishing and post-finishing capability. Customer response to our outsourced products continues to be great," Liebenow said.
"Since the second quarter of 2005, we have also implemented further significant reductions in our cost structure. In addition, during the twelve-month period which began at the end of fiscal June 2005, operating improvements and tight controls on inventory levels and capital spending generated operating cash flow of approximately $17.0 million. This cash flow allowed us to reduce debt from $51.9 million at the end of fiscal June 2005 to $34.8 million at the end of this year's second quarter," Liebenow added.
"Between now and the end of this year, we will remain focused on effective execution of our restructuring plan, including - continued aggressive marketing of both our offshore fabric programs as well as the fabrics that it makes more sense, to us and to our customers, for us to make here in the US - the consolidation of our Fall River manufacturing operations into fewer facilities - active marketing of our excess real estate and other assets - and implementation of additional substantial cost reduction programs," he concluded.
Quaker Fabric Corporation is a leading manufacturer of woven upholstery fabrics for furniture markets in the United States and abroad, and the largest producer of Jacquard upholstery fabric in the world.
-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)")
