Unifi Reports Q3 Results, Announces Plans To Close Dillon Plant
Unifi Inc., Greensboro, N.C., reported a net loss, including discontinued operations, of $13.2 million, or 22 cents per share, for the third quarter (Q3) of 2007, compared to a net loss, including discontinued operations, of $2.1 million in Q3 2006; and a net loss from continuing operations of $13.9 million, or 23 cents per share, for the quarter, compared with a Q3 2006 net loss from continuing operations of $1.3 million, or 3 cents per share. The results include $12.9 million in pre-tax impairment charges related to plant and equipment write-downs, and $3.5 million in bankruptcy-related charges owing to the recent filing for Chapter 11 bankruptcy protection by its customer Joan Fabrics Corp.
Q3 2007 net sales totaled $178.2 million, down $3.2 million, or 1.8 percent from Q3 2006 sales.
In other news, Unifi announced it will close its Dillon, S.C., plant, which it acquired at the beginning of this year, and move production to its Yadkinville, N.C., facility, with the expectation of reducing costs by some $5 million annually. The closure, expected to be completed by July 31, will affect approximately 355 employees at Dillon, while the company will add approximately 120 positions at Yadkinville to handle the additional production volume there. Unifi also will relocate some of the Dillon plant's 42 texturing machines to other company facilities.