Consolidation hurts Guilford 4Q
By Don Hogsett -- Home Textiles Today, 11/20/2000
GREENSBORO, NC -Weighed down by a $28.6 million pre-tax restructuring charge, the price of overhauling its battered apparel operations, Guilford Mills recorded a fourth-quarter loss of $21.0 million, compared with $10.2 million from the year-ago period.
Sales at the diversified textiles producer fell by 10.1 percent, to $185.0 million from $205.7 million, weakened by a big 14.6 percent decline in apparel sales and a 7.4 percent drop in its automotive fabric sector. Home fashions sales held relatively steady, slipping just 2.2 percent, to $20.4 million from $20.8 million last year.
Dragging at the bottom line was a $28.6 million charge that covers the cost of shutting two apparel plants and consolidating lace knitting operations from two plants to one.
John Emrich, president and ceo, said, "Our apparel business has been irreparably damaged by fabric and garment imports and the U.S. government's willingness to sacrifice the commodity end of the domestic apparel and textile industry."
Going forward, home fashions will remain a focal point. "With significantly improved operating results in fiscal 2000 and licensing and branding opportunities, we are establishing a secure position in this sector," he said.
|
Qtr. 10/1 (x000) |
2000 |
1999 |
%CHG |
|---|---|---|---|
|
Sales |
$184,957 |
$205,732 |
(10.1) |
|
Oper. income (EBIT) |
(6,131) |
4,718 |
- |
|
Net income |
(24,178)a |
2,181a |
- |
|
Per share (diluted) |
(1.28) |
0.11 |
- |
|
Average gross margin |
8.4% |
14.2% |
- |
|
SG & A expenses |
11.7% |
11.9% |
- |
|
12 months |
2000 |
1999 |
%CHG |
|
Sales |
814,226 |
856,838 |
(5.0) |
|
Oper. income (EBIT) |
8,151 |
29,438 |
(72.3) |
|
Net income |
(20,974)b |
10,230b |
- |
|
Per share (diluted) |
(1.28) |
0.11 |
- |
|
Average gross margin |
12.9% |
15.4% |
- |
|
SG & A expenses |
11.9% |
12.0% |
- |
( ): Denotes loss
a-Fourth-quarter earnings include a restructuring charge of $28.6 million, compared with a prior-year credit of $470,000; and an income-tax benefit of $13.8 million vs. $299,000 the previous year.
b-12-month results include the $28.6 million restructuring charge vs. the $470,000 year-before credit; and a tax benefit of $21 million, compared with a year-before tax payment of $10.2 million.
