Unifi Posts Q3 2008 Profit

Greensboro, N.C.-based textured yarn manufacturer Unifi Inc. posted its first quarterly profit in five years as a result of its new leadership’s efforts to restore the company to profitability.

Net income for the third quarter (Q3) of fiscal year 2008 was $12,000, compared with a Q3 2007 net loss of $13.3 million. Q3 2008 net sales were $169.8 million, compared with Q3 2007 net sales of $178.2 million.

The company reported a net loss of $16.99 million and net sales of $523.7 million for the first nine months of the year, compared with a net loss of $41.6 million and net sales of $505 million for the year-earlier period.

“Our focus on the profitability of our core business has resulted in improving financial performance, which we expect to continue,” said William L. Jasper, president and CEO. “In addition, the new leadership team has been working with our joint venture partner in China to develop appropriate strategies aimed at accelerating our path to profitability. We are exploring strategic options with our partner and will provide further guidance when more information becomes available. We remain committed to our original objective for China, which is to provide locally produced value-added products to our Asian customers.”

Jasper, who has been with Unifi since 2004, was named to his current position in September 2007 following a shake-up of company leadership in August 2007 (See “ Unifi Names New Chairman, Reports Q4 Losses, Announces Plant Closing,”, August 7, 2007). Jasper serves on the Executive Committee of the Board of Directors along with Unifi Chairman Stephen Wener; Executive Committee Chairman G. Alfred Webster; and R. Roger Berrier Jr., appointed in September 2007 to executive vice president of sales, marketing and Asian operations. Ronald L. Smith, treasurer, also was appointed at that time to an expanded position of vice president of finance and treasurer.

May 13, 2008