"While gasoline prices fell in September, our prices continued to increase. Raw material prices are expected to ease during the December quarter, and we've already seen a decline in October. Soft retail sales, especially in home upholstery, continued to have an effect on our volumes as well. Even with these challenges, Unifi posted an improvement in gross margin for the current quarter as compared to the prior year September quarter."
Total debt at the end of the current quarter was $204.0 million, which is a reduction of $60.6 million over the $264.6 million in debt at the end of the prior year September quarter. Cash-on-hand at the end of the current September quarter was $29.5 million, down from the $90.7 million cash-on-hand at the end of the prior year September quarter but essentially unchanged since June 2006.
Brian Parke, Chairman and CEO of Unifi said, "While our polyester segment was negatively affected this quarter by several factors, our nylon segment continues to benefit from our previous consolidation efforts."
"Nylon volumes were slightly up from the June 2006 quarter and coupled with consolidation savings resulted in an improvement over last year September of $0.8 million in operating profit. While we expect polyester volumes to return slowly during the current quarter and raw material prices to decline, we expect this next quarter to look very similar to our quarter ended this September from a volume perspective."
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-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)")
