Unifi Inc released operating results for its first quarter ended September 24, 2006.
Net income for the current quarter, including discontinued operations, was a net loss of $11.1 million or $0.21 per share compared a net loss of $3.1 million or $0.06 per share for the prior September quarter, which included $1.9 million of income from discontinued operations due to a gain on the sale of the Company's property located in Ireland. Net income from continuing operations for the current quarter was a net loss of $11.0 million or $0.21 per share compared to a net loss of $4.8 million or $0.09 per share for the prior September quarter.
Net sales from continuing operations for the current September quarter of $169.9 million were down $13.2 million or 7.2% compared to net sales of $183.1 million for the prior year September quarter.
"We were near the low-end of our forecast for the quarter, as our results were impacted by several unexpected items. First, rising raw material prices above our expectations resulted in a $1.5 million LIFO charge to earnings.
Second, we increased our bad debt reserve $1.0 million more than usual as we reviewed our risks in certain customers, and the unexpected continued increase in raw material in September slowed volumes rather dramatically in the month of September in both the U.S. and China as fabric mills worked through existing inventories rather than pay the higher prices for polyester," said Bill Lowe, Chief Operating Officer and Chief Financial Officer for Unifi.
-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)")
