Devan Shows High Activity Of BI-OME Fabric Coating Against SARS-COV-2 And Other Viruses After Intense Washing

RONSE, Belgium — September 8, 2020 — Devan today announces new test results confirming the high performance virus-reducing capabilities of its BI-OME fabric coating technology on both unwashed and intensely washed fabrics. According to independent testing, BI-OME is proven to achieve 99 percent and higher virus reduction, including of SARS-COV-2, on samples before washing and retains 98.5 percent even after 25 wash cycles.

“In view of the COVID-19 pandemic and fast-approaching autumn/winter flu season, we were keen to provide textile manufacturers with concrete assurance regarding virus reduction performance on washed samples according to ISO 18184. This exceeds the limitations of the post-wash antimicrobial results most commonly shared for other technologies, giving the textile industry a clear, more precise overview of performance and wash durability,” commented Sven Ghyselinck, CEO of Devan.

Over recent months, Devan has worked closely with a series of international third party laboratories to test different fabric substrates against a wide of enveloped viruses. Before washing, samples treated with Devan BI-OME score very good to excellent (99 percent and higher according to ISO 18184) results on virus reduction. Different substrates, like polyester, cotton and polycottons, were exposed to enveloped viruses like SARS-COV-2 (known to cause COVID-19), Feline Corona, Vaccinia (the EU standard for enveloped viruses) and Porcine Respiratory viruses. After 30 minutes, BI-OME already reduced 99.96 percent of the activity of SARS-COV-2.

After washing, a decrease in virus reduction performance of coating technologies is normal and expected. However, BI-OME is confirmed to deliver only a minimal reduction, retaining up to 98.5 percent virus reduction even when the fabric is washed 25 times. Devan is further improving its formulas to improve wash resistance even more and at the same time keep the economical add-on cost as low as possible.

Devan’s BI-OME is already endorsed by a wide range of companies. Their collections span diverse applications including bedding, clothing, travel accessories, and transport.

BI-OME is a non-metal non-leaching quat silane-based chemistry. The product is BPR (EU, TR) and EPA registered and Ökotex class 1 registered. Through its nature it is inherently biodegradable.

Posted September 8, 2020

Source: Devan Chemicals NV

INDA Announces The 2020 RISE® Innovation Award Finalists: Changing The Future With Ingenious Solutions In Engineered Materials

CARY, N.C. — September 8, 2020 — INDA, the Association of the Nonwoven Fabrics Industry, announced the three finalists that will present their innovative material science solutions as they compete for the prestigious RISE® Innovation Award during the tenth edition of the Research, Innovation & Science for Engineered Fabrics Conference, (RISE®) to be held completely virtually September 29-October 1, 2020.  The award recognizes novel innovations within and on the periphery of the nonwovens industry that creatively use next-level science and engineering principles to solve material challenges and expand the usage of nonwovens and engineered fabrics.

Meet your Finalists for the 2020 RISE® Innovation Award:

  • FemTech at MAS Holdings Pvt. Ltd. – Leakproof Absorbent Nursing Pads – Pregnant women needed a better solution for managing breast milk leaks. FemTech nursing pads absorb 30 milliliters of fluid leaving the consumer feeling dry and confident and are shaped, so they grip and stay in place in the bra.
  • Pedilay® Care GmbH – Pedilay med – Pedilay med is a ready-to-use foot bandage that encloses the foot up to the ankle and supports medical treatments. It saves valuable care time, since the bandage can be put on or taken off very gently within a few seconds.
  • The Nonwovens Institute – Spunbond High Efficiency Filter – A completely new approach to creating filtration media with the right efficiency at low pressure drop at a throughput of 350 kilogtrams per meter per hour. The pressure drop with The Nonwovens Institute’s new filter is unmatched by any meltblown structure and doesn’t require electrostatic charging.

Virtual RISE™ conference attendees — technology scouts and product developers in the nonwoven/engineered fabrics industry charged with finding “what’s new and next” to help advance their businesses — will vote for the recipient of the 2020 RISE® Innovation Award, on Wednesday September 30. The winner will be announced Thursday, October 1.

The three finalists were selected by technical experts on INDA’s Technical Advisory Board. The 25-member board of technical professionals is represented by companies such as Absorbent Hygiene Insights LLC, Auburn University, Berry Global, Cotton Incorporated, Crown Abbey LLC, Fi-Tech, Inc., Freudenberg Performance Materials, Jacob Holm, Lenzing Fibers Inc., Loftus Technical Consulting LLC, Natureworks LLC, Nice-Pak Products, Nonwovens by Design, Norafin (Americas) Inc., North Carolina State University, Peter Wallace LLC, Poccia Consulting LLC, Rockline Industries, Smith, Johnson & Associates, Suominen, Texas Tech University, The Procter & Gamble Company, and Tredegar Corp. 

In 2019, the RISE® Innovation Award was presented to the Nonwovens Innovation & Research Institute (NIRI) for Surfaceskins, antibacterial door push pads and pull handles.

“Our Virtual RISE Conference promotes and rewards innovation across all nonwoven and engineered material sectors. Forward-thinking technology scouts and product developers will share invaluable information on new approaches and concepts to resolve their material science challenges. For any nonwoven professional charged with finding new technologies, Virtual RISE is a must-attend event,” said Dave Rousse, INDA’s President.

The conference program will cover timely and relevant industry topics including: Biosourced Polymers & Fibers; Sustainability – Plastics in the Environment; Material Science Developments; and Market Data and Intelligence Trends. The full program can be viewed on the link: https://www.riseconf.net/conference.php

“I like the diversity; this is my sixth time at RISE making connections,” said Dr. Sanjiv Malkan, engineering principal, Textile & Adhesive Engineering, Hunter Douglas. “I come to learn,” said Harish Patel, R&D Director, Cardinal Health. “This conference provides valuable new nuggets of information and I always make six to eight strong connections,” commented Darryl Fournier, vice president, America, Norafin (Americas) Inc.

Posted September 8, 2020

Source: INDA, the Association of the Nonwoven Fabrics Industry

SASA Will License Innovative INVISTA P8 Technology For New Plant In Adana, Turkey

WILTON, England — September 3, 2020 — INVISTA’s technology and licensing group, INVISTA Performance Technologies (IPT), and SASA Polyester Sanayi A.Ş. (SASA) reached an agreement on August 25 for the license of IPT’s P8 process technology for SASA’s PTA project in Adana, Turkey.

With an annual PTA production capacity of 1.5 million metric tons, this would be the largest single-stream design capacity licensed by INVISTA. Built on the demonstrated performance of IPT’s P8 technology platform, the variable cost, capital productivity and environmental performance of this PTA plant is expected to set new benchmarks within the industry.

Ibrahim Erdemoğlu, SASA’s chairman, said: “SASA will continue to invest in polyester to position itself as the leading polyester producer after China and India. This agreement will enable self-sufficiency in PTA, terminating all PTA imports into Turkey. This is also the first step of SASA’s investment in petrochemicals with more investment in polyester, PTA and MEG to follow in Adana’s Yumurtalik district.”

Mike Pickens, IPT president, said: “Our companies have a long history of cooperation dating back to 1974, when SASA licensed IPT’s polyester technology. We are honored that our industry-leading P8 PTA technology has been selected by SASA. The signing of this license agreement has great significance in terms of long-term collaboration between SASA and IPT.”

IPT’s industry-leading PTA technology, including its latest version of P8 technology, is available as a license package from IPT.

Posted September 5, 2020

Source: INVISTA

Hyosung TNC Supplies Eco-Friendly Material To Outdoor Backpack Brand

SEOUL — September 4, 2020 — Hyosung TNC is accelerating entry to the global eco-friendly fiber market by supplying an eco-friendly material to Osprey, a global outdoor backpack brand.

MIPAN®regen robic developed by Hyosung TNC is an eco-friendly high-strength nylon yarn brand. This eco-friendly material is created by recycling byproducts generated from the fiber production stage. Lightweight with excellent tearing strength — resistance against tearing — and wear resistance, MIPANregen robic is suitable for outdoor products, such as backpacks, working clothes, and swimsuits. When 1 kilogram (kg) of reclaimed nylon yarn is produced, an effect to reduce greenhouse gas emission in an amount equivalent to 6 to 7 kgs of CO2 is created. Therefore, this product is known as an eco-friendly yarn.

In the first quarter of this year, Hyosung TNC started supplying MIPANregen robic, a high-strength reclaimed nylon yarn, to Osprey of the United States.

Osprey will release Talon/Tempest Series, a flagship backpack line created with MIPANregen robic, for the spring season next year.

At the ISPO (a global trade fair for sporting goods and sportswear), one of the world’s three trade fairs for sports and outdoor businesses, held in Munich, Germany in February, Hyosung TNC was directly requested by Osprey to supply an ‘eco-friendly and high-strength product.’ Having won recognition for its technological power and supply capacity by supplying ‘robic,’ a general version of MIPANregen robic, to Osprey for several years, Hyosung TNC released MIPANregen robic, a customized and eco-friendly nylon yarn, after a development process of around one year.

Meanwhile, the demand for eco-friendly products is rising among businesses to increase their enterprise values as of late especially in the premium markets, such as the Americas and Europe. This is because the European Union plans to introduce the Carbon Border Adjustment next year and, when this system is put into effect, carbon tax will be imposed on imported goods that emit a large amount of greenhouse gas.

The global eco-friendly fiber market is growing on an average of approximately 10 percent per year. The market scale is expected to reach around $70 billion (approx. KRW 83 trillion) by 2025.1

In line with this trend, the annual sales of Hyosung TNC’s eco-friendly yarn division have been more than doubling since 2017. Hyosung TNC has established a policy to strengthen entry to the global market with its eco-friendly products, such as MIPAN regen (nylon), regen (polyester), and creora regen (spandex).

“Customers have started demanding businesses to have a high level of awareness of and responsibility for the environment,” said Chairman Cho Hyun-joon of Hyosung Group. Chairman Cho added, “Based on the Green Management Vision 2030, Hyosung will continue expanding products, materials and business models with which to realize the eco-friendly values.”

Osprey holds an approximate 43-percent share in the global outdoor backpack market. Famous for lightweight and highly durable backpacks, this company has secured differentiated competitive power based on its high-speed development and high-efficiency production of innovative and eco-friendly materials.

1Source: September 2019 Report of Global research and consulting firm Grand View Research https://www.grandviewresearch.com/press-release/global-eco-fiber-market

Posted September 5, 2020

Source: Hyosung Corp.

The Welch Foundation And Rice University Announce Creation Of The Welch Institute: Establish Houston As A Worldwide Hub For Advanced Materials Research

HOUSTON — September 3, 2020 — The Robert A. Welch Foundation announced yesterday a $100 million gift to Rice University to establish The Welch Institute, a sweeping strategic partnership focused on world-leading advanced materials research.

The Welch Institute, which will be located on the Rice University campus, will combine fundamental research in chemistry and materials science with the latest in machine learning and artificial intelligence to accelerate the discovery, design and manufacture of the next generation of materials with applications to new energy systems, sustainable water, space systems, telecommunications, manufacturing, transportation, security and more.

The goal of The Welch Institute is to attract top researchers from around the world to collaborate with Rice University’s internationally renowned faculty and scientific resources, making the Institute a center of intellectual discovery, innovation and transformation in advanced materials. The Institute will be governed by an independent Board of Directors and advised by a Scientific Advisory Board.

“The Welch Institute will focus on the development of advanced materials for the good of society and to advance the vision of Robert A. Welch, who believed in basic chemical research as a powerful force for transformative breakthroughs and improving the quality of life,” said Welch Foundation Chair and Director Carin Barth. “It will bring together top minds across all disciplines to catalyze innovation and center leadership in the field right here in the Houston area.”

Why is advanced materials research so important? The major milestones of civilization have been defined by new materials. The Bronze Age. The Iron Age. Even the present Information Age was enabled by the development of advanced materials that resulted in the semiconductor.

Until recently, new materials were often discovered by serendipity. Recent examples include Kevlar, solar panels, lithium batteries, the quantum dots that enabled HDTV and the composites used in knee and hip replacement. But collaboration across disciplines has enabled more intentional discoveries.

Although the theoretical and computational sciences have played an ever-expanding role in the discovery process, recent advances in data mining, computational chemistry and quantum theory have produced breakthroughs in creating “materials by design” with predictable properties — new, de novo, from-the-molecules-up materials that can help usher in a new era of progress on humanity’s major challenges.

The Welch Institute will be the first such effort in which the goals, the scientific strategy, the scientific team, and the facilities and equipment are constituted at the outset to utilize basic research to drive the design of advanced materials. Researchers at the institute might, for example, explicitly design materials that would be rigid or flexible, to conduct heat, to emit light or to advance quantum computation. In the not-too-distant future developments such as these could lead to solar cells that cheaply and efficiently provide abundant clean energy. Other devices stemming from the Institute’s research might compute at the speed of light or exploit the quantum properties of matter, solving problems that are impossible to overcome on today’s computers.

“Rice University is an ideal foundry for the next generation of advanced materials because of our strengths in both materials and computational sciences,” said Rice University President David Leebron. “The Welch Institute will foster an ecosystem of exploration, drawing from diverse disciplines to drive a new materials-based era to advance human welfare and progress, a multi-faceted successor to previous eras defined by stone, iron, bronze and silicon.”

For The Welch Foundation, the new institute represents a logical next step, building on its established programs, which have had a significant impact on the scientific community. For the past 65 years, the Foundation has supported basic research in chemistry and related fields in Texas colleges and research universities. The Foundation also bestows two annual awards: The Welch Award in Chemistry recognizes substantial achievements in chemical research, and the Norman Hackerman Award in Chemical Research recognizes the accomplishments of scientists early in their careers. Those programs will continue full force.

“The Foundation has contributed more than $1 billion, endowing 48 chairs at 21 Texas universities and supporting the work of hundreds of world-class research chemists,” said Peter Dervan, chairman of the Scientific Advisory Board of The Welch Foundation and Bren Professor of Chemistry at the California Institute of Technology (Caltech). “We want to develop the Institute while maintaining all of our legacy grant programs and awards, which have served Texas scientists so well over the years.”

The Foundation considered funding a dedicated research institute several times in the past. The opportunity to partner with Rice University played an important role in the decision to move forward now. The Rice faculty is world-renowned, and collaboration between disciplines has been integral to the school’s culture since its inception. That collaboration was fundamental to the 1985 discovery of buckminsterfullerene (a new form of carbon) at Rice, which won the Nobel Prize in Chemistry in 1996 and laid the foundation for nanotechnology.

“As a member of The Welch Foundation’s Scientific Advisory Board, I am thrilled the Foundation is investing in such a meaningful way in a field of research that holds so much promise for solving the world’s problems,” said Catherine Murphy, Larry R. Faulkner Endowed Chair in Chemistry at the University of Illinois at Urbana-Champaign.

Sixty-five years ago, Robert A. Welch said, “I have long been impressed with the great possibilities for the betterment of mankind that lay in the field of research in the domain of chemistry.” A half century earlier, Rice University’s first President, Edgar Odell Lovett, proclaimed that there should “be no upper limit” to the ambitions of this Rice University. Those two visions unite as one in the new institute.

“The establishment of The Welch Institute represents a new benchmark in the realization of their ambitions, a boon to Houston, and by intention a great benefit to mankind,” added Barth.

Posted September 5, 2020

Source: The Welch Foundation

Polygiene Takes First Steps With Dr. Scholl’s

MALMÖ, Sweden — September 4, 2020 — Dr. Scholl’s®, a foot care brand, is now keeping its premium insoles fresh from odor and microbes by teaming up with odor-controlling specialist Polygiene.

Moving forward, Dr. Scholl’s insoles will combine two Polygiene technologies — antibacterial Stays Fresh Technology and Odor Crunch® treatment — to stop the growth of odor-causing bacteria. “We are looking forward to elevating the value proposition of our hardest working insole with the addition of Polygiene technology,” said Kate Godbout, senior vice president of marketing at Dr. Scholl’s.

The first product to incorporate this new offering is the Dr. Scholl’s Massaging Gel Work Insole. Designed for people who work on their feet all day, these insoles give you energizing comfort so you can do more at work and at home. Patented gel waves cushion your feet, absorb shock, and get rid of your achy feet and legs even when standing on hard floors all day long. The addition of the combination treatment from Polygiene will ensure these insoles inhibit and guard against the growth of odors from bacteria and fungi, keeping the products fresh and hygienic.

“Everyone here in North America knows Dr. Scholl’s,” said Hans Bergman, sales director for Polygiene. “We are impressed with their long history of adding know-how and technology to help you move better from the ground up. And now writing in Polygiene as the next chapter in their story, feels fantastic.”

Dr. Scholl’s has a wide array of offerings with benefits that range from foot comfort to cooling, arch support to ingrown toenail pain relief. Polygiene technologies will eventually be incorporated into the broader portfolio of Dr. Scholl’s insoles for everyday walking shoes.

Posted September 4, 2020

Source: Polygiene AB

Ascend Completes Purchase Of Poliblend And Esseti Plast

HOUSTON — September 3, 2020 — As part of its global growth strategy, Ascend Performance Materials has completed its acquisition of Italy-based firms Poliblend and Esseti Plast. With this purchase, Ascend expands its portfolio into other engineered plastics, recycled resins and masterbatches.

“Poliblend and Esseti Plast complement our current business exceptionally well,” said John Saunders, Ascend’s vice president of Europe. “Our experience as a large-scale, fully integrated polyamide 66 manufacturer coupled with Poliblend’s portfolio of recycled and virgin PA66, PA6 and POM, and Esseti Plast’s extensive masterbatch operations will offer our customers more choices for quality, high performance materials on a global scale.”

As part of the purchase, Ascend establishes its second production facility in Europe. The acquisition also includes Poliblend Deutschland, a distribution facility located in Germany.

“This acquisition, coupled with our new compounding facility in China, will allow us to serve our customers locally around the globe,” said Phil McDivitt, Ascend’s president and CEO. “We now have production, product development and testing capabilities in North America, Asia and Europe, giving us additional scale to respond to our customers. Furthermore, a product developed for a customer in Europe can be quickly replicated and produced across the globe to meet shifting supply chain needs.”

Announced in February 2020, the acquisition was put on hold as COVID-19 cases spiked in Italy and then in the United States. “I am extremely grateful to Poliblend’s leadership and our team in Europe for navigating unprecedented circumstances to ensure this deal closed,” McDivitt said. “The safety and health of our people is our highest priority.”

Posted September 3, 2020

Source: Ascend Performance Materials

VDMA: Technology Webtalk On Waste Water Reduction And Treatment

FRANKFURT, Germany— September 3, 2020 — The next international VDMA webtalk on September 9, 2020, from 2-4 p.m. CEST) will focus on “Waste water reduction and treatment in textile dyeing and finishing.”

Facing environmental and economic requirements, textile manufacturers need to implement wastewater treatment technologies in their factories.

The presenters and their topics at a glance:

Bertram Stetter — Airflow technology from FONG’S EUROPE leads to the lowest water consumption per kilogramme of textile in discontinuous dyeing processes by transporting textile goods with air.

Karl Hesse, Körting Hannover, will explain how the operating costs of your mercerising process and the ecological footprint can be reduced at the same time. Savings of more than one million USD per year are realistic and the pay-back time is less than one year.

Dr. Norbert Müller-Blanke, TIA Technologies for Industrial Wastewater Treatment, will focus on the necessity, benefits and operating requirements of wastewater treatment technologies.

After the presentations, the experts will be available to answer the participants’ questions.

Registration is possible via this link https://register.gotowebinar.com/register/5531298161916946192  (no participation fee).

Posted September 3, 2020

Source: VDMA

Applied Composites Acquires Alliance Spacesystems, A Provider Of High-Performance Composite Structures For The Space Industry

LAKE FOREST, Calif. — September 2, 2020 — Applied Composites Holdings LLC announced today that it has acquired Alliance Spacesystems LLC, a vertically integrated provider of high-performance composite structures and assemblies for the commercial, civil and government satellite market. Terms of the transaction were not disclosed.

This marks the fifth acquisition of the Applied Composites platform created by AE Industrial Partners LP (AEI), a private equity firm specializing in aerospace, defense and government services, power generation, and specialty industrial markets.

Alliance offers a full spectrum of composite structure capabilities for the satellite industry, from engineering to manufacturing, integration and final qualification testing. The company is a premier supplier of high-precision payload structures for satellite buses, antenna reflectors, booms and support structures used for a wide variety of military and commercial applications. Alliance is a qualified supplier for Boeing, Lockheed Martin, Northrop Grumman, and Ball Aerospace, among others. The Company also creates high-strength composite structures for launch vehicles, as well as produces high quality, affordable rigid composite solar array substrates. Alliance provides end-to-end composite manufacturing services through its state-of-the-art facilities in Los Alamitos and San Diego, Calif.

“We are excited to add Alliance, with its well-respected space heritage and its extensive line of composite products and services, to our growing company,” said David Horner, CEO, Applied Composites. “Interest and investment in the space industry is at an all-time high, and we look forward to working closely with the Alliance team as we look for ways to meet this growing demand and better serve our customers.”

“This is a highly strategic combination that significantly strengthens our market position and value proposition,” said Rick Byrens, general manager, Alliance.  “Together, we possess a unique set of capabilities and skills that will help us to accelerate our growth and continue to deliver the quality and complexity that our customers demand.”

“When we formed Applied Composites, our goal was to create a one-stop shop for complex composites, offering unparalleled products and services to the aerospace, defense and space industries,” said Kirk Konert, partner at AEI. “With the addition of Alliance, we have taken another step in building a uniquely diverse and vertically integrated composites platform.”

Kirkland & Ellis served as legal advisor and RSM served as financial advisor to Applied Composites. Blank Rome was the legal advisor and KippsDeSanto & Co. was the financial advisor to Alliance.

Posted September 2, 2020

Source: Applied Composites

Culp Announces Results And Strengthened Liquidity For First Quarter Fiscal 2021, Announces Quarterly Dividend

HIGH POINT, N.C. — September 2, 2020 — Culp Inc. today reported financial and operating results for the first quarter ended August 2, 2020, which were materially affected by the coronavirus (COVID-19) pandemic. Additionally, the first quarter of fiscal 2021 included 13 weeks compared with 14 weeks for the first quarter of fiscal 2020.

Fiscal 2021 First Quarter Financial Summary1

  • Net sales were $64.5 million, down 8.8 percent over the prior-year period, with mattress fabric sales down 7.1 percent and upholstery fabric sales down 11.0 percent compared with the first quarter of last year.
  • Pre-tax income from continuing operations was $1.5 million, compared with pre-tax income from continuing operations of $3.5 million for the prior-year period.
  • Net loss from continuing operations was $(2.7) million, or $(0.22) per diluted share, compared with net income from continuing operations of $1.8 million, or $0.14 per diluted share, for the prior-year period.
  • Adjusted net income from continuing operations (non-GAAP) was $1.0 million, or $0.08 per diluted share2. Adjusted net income from continuing operations for the prior-year period was $2.0 million, or $0.16 per diluted share3.
  • The company’s financial position reflected total cash and investments of $47.4 million and no outstanding borrowings as of August 2, 2020. This compares with a net cash position of $38.7 million as of the end of the fourth quarter of fiscal 2020.
  • Cash flow from operations and free cash flow were $10.6 million and $10.0 million, respectively, compared with cash flow from operations and free cash flow of $2.0 million and $1.0 million, respectively, for the prior-year period.
  • The company announced a quarterly cash dividend of 10.5 cents per share, payable in October.

1During the fourth quarter of fiscal 2020, the company sold its majority ownership interest in eLuxury LLC, resulting in the elimination of its home accessories segment. Accordingly, the financial results for this segment are excluded from the reported financial performance of the company’s continuing operations and are presented as a discontinued operation in the company’s consolidated financial statements.

2This excludes a $3.7 million net income tax charge, which consists of a $7.2 million non-cash income tax charge to record a full valuation allowance against the company’s U.S. net deferred income tax assets, partially offset by a $3.5 million non-cash income tax benefit resulting from the re-establishing of certain U.S. Federal net operating loss carryforwards in connection with the U.S. Treasury regulations enacted during the first quarter of fiscal 2021 regarding the Global Intangible Low Taxed Income (“GILTI”) tax provisions of the Tax Cuts and Jobs Act of 2017.

3This excludes a $229,000 income tax charge, which represents the company’s estimated GILTI tax incurred through the first quarter of fiscal 2020.

Financial Outlook

Due to the continued economic impact of the COVID-19 pandemic and the lack of visibility as to its duration, the company is providing only limited financial guidance for fiscal 2021 at this time.

Although subject to unforeseen changes that may arise as the pandemic and its economic impact continue to unfold, the company is encouraged by improving business conditions. The company expects sales and operating income for the second quarter of fiscal 2021 to be materially improved as compared to the first quarter, but not reaching the performance achieved in the second quarter of last year, which was an especially strong quarter for the upholstery fabrics segment.

Commenting on the results, Iv Culp, president and CEO of Culp, said: “As we continue to navigate our way through these uncertain times, we remain focused on the health and safety of our employees, customers, suppliers, and the communities that we serve. I am incredibly thankful for our team’s hard work, agility, and commitment to safety, and I am proud of our leadership team for adapting and effectively managing through this challenging environment.

“We are pleased that both our mattress fabrics and upholstery fabrics segments saw better-than-expected increases in orders and shipments during the quarter, particularly during the last eight weeks. We are especially pleased with the substantial sequential improvement compared with the end of the fourth quarter, going from a significant pre-tax loss to profitability. We believe these trends are primarily being driven by a surge in consumer focus on the home environment and overall comfort, leading to an increased proportion of discretionary spending moving to home furnishings.

“Although the ongoing impact and duration of the COVID-19 pandemic remain unknown, we are cautiously optimistic, based on current demand trends, that business will continue its solid return in the second quarter of fiscal 2021. We are confident that our product-driven strategy, strong management team, and solid financial position will enable us to overcome the near-term headwinds and capture market share as we continue to demonstrate the resilience and strategic advantage of our global platform and stable supply chain. Our balance sheet remains strong, as evidenced by our significantly improved liquidity as compared to pre-pandemic levels at the end of the fiscal 2020 third quarter. We are also pleased to have maintained our quarterly dividend throughout this period of disruption, and we are excited about the continued sequential improvement in our business we expect for the second quarter of fiscal 2021,” added Culp.

Segment Update

Mattress Fabrics Segment

Sales for this segment were $36.1 million for the first quarter, down 7.1 percent compared with sales of $38.9 million in the first quarter of fiscal 2020, which included an extra week. Excluding this extra week, sales for the first quarter of fiscal 2021 were comparable (based on average sales per week) to sales for the first quarter of fiscal 2020.

Sandy Brown, president of Culp’s mattress fabrics division, stated: “While our mattress fabrics sales and operating performance for the first quarter of fiscal 2021 were affected by the ongoing disruption from the COVID-19 pandemic, we were pleased with the solid improvement during the quarter as business conditions began to normalize. The beginning of the quarter was materially affected by the virus, but we experienced a greater than anticipated increase in demand beginning in mid-May as government restrictions were lifted and customers and retail stores resumed operations. This increase continued throughout the quarter across all product offerings, including our CLASS mattress cover business, approximating pre-pandemic levels at quarter end. We returned all our previously furloughed workers and rapidly expanded our production schedules to meet this growing demand. As a result, sales increased by approximately 60 percent from the fourth quarter of fiscal 2020 to the first quarter of fiscal 2021.

“While we were energized by the sequential growth in sales and improving business conditions for the quarter, our operating performance was negatively affected by manufacturing inefficiencies associated with the dramatic ramp up in operations, as well as significant inventory reductions. Despite these challenges, we believe business conditions are stabilizing and will result in improved profitability going forward, barring additional disruption related to the pandemic. To support our future growth plan, we are investing in additional equipment to expand our capacity in North America. We believe the strength and flexibility of our global manufacturing and sourcing operations in the U.S., Canada, Haiti, Asia, and Turkey have us well positioned to execute our strategy and support the current environment surrounding the changing demands of our customers,” added Brown.

Upholstery Fabrics Segment

Sales for this segment were $28.4 million for the first quarter, down 11.0 percent compared with sales of $31.9 million in the first quarter of fiscal 2020, which included an extra week. Excluding this extra week, sales for the first quarter of fiscal 2021 were down approximately 4.0 percent (based on average sales per week) compared with the first quarter of fiscal 2020.

“The unprecedented disruption from the COVID-19 pandemic continued to affect our sales and operating results for the first quarter of fiscal 2021,” said Boyd Chumbley, president of Culp’s upholstery fabrics division. “We began the quarter slowly, with a gradual increase in orders and shipments beginning in mid-May as customers and retail stores started to reopen, followed by a swift upturn during the month of June and further acceleration to end the quarter. We returned all our previously furloughed workers to meet this rapid increase in demand, and our strong platform in Asia, including our cut and sew capabilities in Vietnam and our stable supply chain, has allowed us to respond quickly and meet the needs of our customers.

“We were pleased with the improvement throughout the quarter as demand increased in most of our businesses, including our residential upholstery business which features our popular lines of LiveSmart® and LiveSmart Evolve™ performance fabrics, as well as the Read Window Products portion of our hospitality business. We have benefited from our ability to continue representing our products for customers through our innovative virtual showcase presentations, and our strong product placements with customers prior to the COVID-19 outbreak have also advanced our recovery as business conditions improve,” Chumbley added.

Balance Sheet

“As the ongoing impact of the COVID-19 pandemic remains uncertain, maintaining a strong financial position remains one of Culp’s top priorities for fiscal 2021,” added Ken Bowling, executive vice president and chief financial officer of Culp, Inc. “As of August 2, 2020, we reported $47.4 million in total cash and investments and no outstanding borrowings, up from our $38.7 million net cash position as of the end of the fourth quarter of fiscal 2020. During the first quarter, we incurred $500,000 in capital expenditures and spent $1.3 million on regular dividends. We also generated cash flow from operations of $10.6 million and free cash flow from operations of $10.0 million for the quarter, compared with cash flow from operations of $2.0 million and free cash flow of 1.0 million for the prior-year period.

Dividends and Share Repurchases

The company announced that its Board of Directors has approved the payment of the company’s quarterly cash dividend of 10.5 cents per share. The dividend is to be paid on or about October 15, 2020, to shareholders of record as of October 8, 2020. Importantly, the company has maintained and increased its annual dividend for eight consecutive fiscal years. The Board will continue to evaluate the appropriateness of the current dividend rate considering economic conditions and the company’s performance in upcoming quarters.

The company did not repurchase any shares during the first quarter of fiscal 2021, leaving $5.0 million available under the $5.0 million share repurchase program approved by the Board in March 2020. As previously disclosed, the company has temporarily suspended its share repurchases given the economic uncertainty related to COVID-19.

Posted September 2, 2020

Source: Culp Inc.

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