POY sales affect Q2 results at Unifi
American producer and processor of multi-filament textured yarns Unifi, Inc. has reported a net loss of $16.5 million for its second quarter ended December 24 compared with a net loss of $3.8 million for the corresponding period in 2005.
Net sales of $156.9 million for the period fell 17.9% to $34.2 million from $191.1 million in the 2005 quarter. Relatively stable sales of the company's nylon and textured, dyed and value-added polyester yarns in the quarter were offset by significant declines in partially oriented yarn (POY).
Chief operating officer and CFO Bill Lowe said, "Earnings were negatively impacted by the lingering effect of higher-priced POY inventory and a significant decline in POY volume during the quarter. The inventory adjustments that took place throughout the supply chain during the December quarter appear largely complete, and our POY and texturing plants are now running at expected capacities. We anticipate operating at these higher run rates and also expect to achieve mix related benefits as well, during the March quarter.”
The company recorded a net loss of $27.6 million for the first half of fiscal 2007 compared with a net loss of $6.9 million in the prior year first half. Net sales for the first half of $326.8 million were down $47.4 million, or 12.7%, compared with net sales of $374.2 million for the first half of fiscal 2006.
Total debt at the end of the current quarter was $206.1 million, a reduction of $58 million over the $264.1 million in debt at the end of the prior year December quarter.
