Archroma To Present The “Science Of Sustainability, Color And Denim” At Denim Première Vision

REINACH, Switzerland — May 17, 2016 — Archroma will present its innovation and solutions for denim and casualwear under the motto: “The science of sustainability, the science of color, the science of denim” at Booth A1 at the upcoming Denim Première Vision (DPV) in Barcelona, Spain.

For all of us, inner beauty matters just as much as outer beauty. Consumers aspire to clothing, garments or textiles that bring them function, beauty … and meaning — clothing, garments or textiles that are made in a more sustainable and responsible way.

Archroma, who is starting to make itself a name for continuously challenging the status quo in the deep belief that it can make its industry sustainable, will present its innovations for a more sustainable denim industry at Denim Première Vision.

The science of sustainability

Archroma’s denim experts look to help denim manufacturers and brands to produce denim based on the most efficient possible use of resources, in particular water.

Archroma brings forward its experience in eco-advanced innovative colors and effects, with its multi-awarded ADVANCED DENIM dyeing technology. ADVANCED DENIM allows savings of up to 92 percent in water, 87 percent in cotton waste and 30 percent in energy, compared to a conventional denim dyeing process.

And whilst trends show a growing demand for earthy and warm tones in denim and casual wear, visitors at the booth will be able to see one of Archroma’s latest innovations: Earthcolors. Earthcolors is a range of colors created from agricultural waste and embracing the latest in communication technology to enable transparency and traceability through the supply chain to consumers. Earthcolors is currently exclusive to brand owners only.

At Denim Première Vision, Archroma will showcase its latest Earthcolors collection that brings to life black, grey and brown washed eco-conscious jeans ideas, as well as an amazing collaboration collection with garment specialist Tonello, showing tee-shirts nitrogen dyed with laser finishing using Earthcolors.

The science of color

Archroma’s expertise covers the full spectrum from the colors of nature to the colors of denim.

At Denim Première Vision, Archroma will present color and finishing solutions to support the denim and casual wear trends foreseen for Autumn/Winter 2017-2018:

  • “bright ’n Blue”, a prototype collection using exclusive Archroma ocean blue dyes suitable for denim, with special mention to its new Diresul® Caribbean Blue for a teal color look;
  • “Stay Dark”, solutions for blue and black concepts to support nighttime-inspired shades;
  • “Earth Hugger”, a capsule collection based on Diresul® RDT and Optisul® C dyes for earthy and military looks;
  • “Indie Go Slide”, a capsule collection mimicking indigo look on printing and coating, using Optisul® Blue C dye and new Printofix® Blue T-WD pigment for wash-down effects with oxidative agents;
  • “Indie Go Dive”, a capsule collection mimicking indigo blue look on a range of fabrics such as Corduroy, knitted, Modal®, or Tencel®;
  • “Stay Cool”, finishing solutions for more functional denim: water repellence that is not based on fluorine, as well as soil and stain release, moisture management, anti-bacterial, soft and elastic finishes, etc.

And because color is a science, Archroma will showcase its recently introduced new Color Atlas by Archroma, a six-volume set that features over 4,300 new colors on cotton poplin. Color Atlas by Archroma brings color creativity and manageability to an entire new level. The “physical library” is complemented by a mobile-friendly “Color Atlas Online” with exciting features such as “color-on-the-go”. This feature allows you to capture an image using your smart phone, and identify the closest Color Atlas shades with the possibility to purchase a color sample instantly!

The science of denim

Archroma is widely recognized in the textile industry as an expert for denim solutions that bring together the science of denim, from color to finish. With Archroma, designers and denim professionals can explore a full solution package from the first idea to the final product.

“When we first introduced our eco-advanced dyeing technology Advanced Denim back in May 2009, very few players in the denim industry could foresee the step-change that the entire textile industry is now going through,” says Nuria Estape, head of global marketing/promotion, “We were forerunners in promoting the possibility to produce denim in a more sustainable way. Today, fashion brands and retailers in particular are under growing pressure to take action, and the entire textile supply chain is eager to find innovations that will allow them to stay in the race. With our sustainability service One Way, our extensive Color Atlas color library, and innovations such as Advanced Denim or Earthcolors, we are helping them to create fashion that brings style, creativity and responsible production closer together.”

Posted May 17, 2016

Source: Archroma

Delta Galil Reports 2016 First Quarter Results

TEL AVIV, Israel— May 16, 2016 — Delta Galil Industries Ltd. — a manufacturer and marketer of branded and private label apparel products for ladies, men and kids, as well as leisurewear and activewear — today reported its financial results for the first quarter ended March 31, 2016.

The Company reported sales of $256.7 million for the first quarter of 2016, an increase of 2 percent from $252.8 million for the same quarter last year. The growth in sales primarily reflected a significant improvement in Europe and in Israel.

Operating income was $14.8 million for first quarter 2016, versus $15.3 million for the first quarter last year, representing a 3-percent decrease. The decline in operating income was primarily a result of the impact of mark to market valuation on hedging transactions, which resulted in a loss of $1.5 million in this quarter, versus a profit of $1.4 million in the first quarter of last year. Excluding the mark to market valuation mentioned above, the operating income in the first quarter of 2016 amounted to $16.3 million, compared to $13.9 million in the first quarter of 2015, an increase of 17 percent.

Net income attributable to shareholders was $7.9 million in the first quarter of 2016, compared to $8.9 million in the same quarter of 2015. Excluding the mark to market valuation mentioned above net of tax effect, the net income in the first quarter of 2016 amounted to $9.0 million compared to $ 7.9 million in the first quarter of 2015, an increase of 13 percent.

Diluted earnings per share attributed to shareholders were $0.31 for the 2016 first quarter, compared to $0.35 for the 2015 first quarter. Excluding the mark to market valuation mentioned above, net of tax effect, the diluted earnings per share in the first quarter of 2016 amounted to $0.35, compared to $0.31 in the first quarter of 2015, an increase of 13 percent.

Management Comment

Isaac Dabah, CEO of Delta Galil, stated: “Our 2016 first quarter results were in line with expectations, reflecting a moderate top-line growth and a double-digit increase in operating profit before the effect of hedging. During the quarter, we began to benefit from investments made in 2015 to improve our business, as we saw a significant increase in Delta USA’s operating profit and meaningful improvements in our global upper market performance resulting from efficiencies in our owned factories.”

“Our diverse blend of business segments, product categories and an expanded global presence, along with our strategic efforts to grow in areas such as branded products, continue to drive both growth momentum and balance,” Dabah continued. “We were pleased with the successful launch of the Puma brand license in Israel during the quarter, and will continue to expand our prominent portfolio of licensed brands by pursuing additional strategic acquisitions.”

“Looking ahead, we are focused on attaining double digit EBIT growth in 2017. We remain committed to investing in new products and resources to drive sustained profitable growth and long-term shareholder value, and with a strong balance sheet and cash position, we have the necessary financial resources to continue to invest, innovate and grow,” Dabah concluded.

EBITDA, Net Debt, Equity, Dividend and Shares Buyback

EBITDA was $20.2 million, or 7.9-percent of sales in the 2016 first quarter, increasing 3-percent compared with $19.6 million, or 7.8-percent of sales in the same quarter of 2015. EBITDA increased 18 percent excluding the effect of mark to market effect of hedging transactions in both Q1 2016 and Q1 2015.

Operating cash flow was negative $23.6 million in the 2016 first quarter, versus negative $19.8 million in the same period of 2015. The increase in negative operating cash flow was due to a $36.8 million increase in working capital, compared with a working capital increase of $33.5 million in the same quarter of 2015, reflecting the seasonality of the business. Operating cash flow for the twelve-month period ending March 31, 2016 was $66.7 million, compared to $40.1 million for the same period last year.

Net financial debt as of March 31, 2016 was $112.4 million, compared to $83.7 million as of March 31, 2015, and $74.5 million as of December 31, 2015.

Equity as of March 31, 2016 was $368.9 million, compared to $328.2 million a year earlier.

Delta Galil declared a dividend of $3.5 million, or $0.139 per share, to be distributed on June 7, 2016. The determining and “ex-dividend” date will be May 25th 2016, per the Tel Aviv Stock Exchange.

The Company has repurchased 163,216 shares since February 25th and until May 15th 2016 under its share buyback plan, representing approximately 59 percent of the $7.5 million plan approved by the board.

Reaffirming Guidance for 2016

The Company is reiterating its 2016 financial guidance, excluding non-recurring items, which is based on current market conditions and current exchange rates of $1.12 per euro and 3.80 NIS per US$. Full-year sales expected to range between $1,090 million-$1,110 million, rising 1 to 3 percent from 2015 actual sales. Full-year 2016 diluted EPS is expected to range between $1.93-$2.02, representing an increase of 2 to 7 percent from 2015 actual EPS of $1.88.

Posted May 16, 2016

Source: Delta Galil

Groz-Beckert Highlights At ITM 2016

ALBSTADT, Germany/ISTANBUL, Turkey — May 11, 2016 — From June 1-4, 2016, the 16th International Textile Machinery Exhibition (ITM) will take place in Istanbul, Turkey. Groz-Beckert will be represented at the Tüyap exhibition grounds with a 210 m² stand in hall 7, booth 707/B showcasing the products and services of its product areas Knitting, Weaving, Nonwovens and Carding.

The product area Knitting will put the emphasis on the interaction of needles and system parts. Transparent knitting and warp knitting machines will give the visitor unique insights into the interplay of all components. The “CircularKnit” exhibit, a circular knitting machine replica made of acrylic glass, will visualize 14 different knitting technologies from gauge E10 to E50. The transparent “WarpKnit” exhibit will present the warp knitting modules that are new in the Groz-Beckert portfolio. A special highlight from the product range is the further developed litespeed® version “litespeed® plus”. Its optimized needle geometry reduces the machine temperature and leads to significant energy savings in the knitting process. The acrylic model “litespeed® plus” will show the needle “live in action” in an extraordinary way.

In the product area Weaving, Groz-Beckert will among others present the quick and universal knitting machine KnotMaster AS/3 at the ITM. An advantage of the high-performance knotting machine is its service and maintenance friendliness. Touch screen control makes operation easy. With four tying methods, single knots, automatic repetition, doubles detector and yarn break detector the AS/3 provides many useful features and, with its widespread range of applications, it is one of the bestsellers among the standard versions. In addition, the knotting machine is capable of handling a large variety of different yarns like cotton, wool, synthetic as well as blended and elastic yarns.

In the product area Felting, special needle solutions for different applications in the nonwovens industry will occupy center stage. As the individual needle types of the Groz-Beckert range of products vary in terms of barb size and shape as well as working part gauge and cross-section, the correct needle can be offered for each application. To obtain a high surface quality, the use of GEBECON® and EcoStar® felting needles is recommended. GEBECON® is characterized by an increased stability combined with a high bending resistance and ensures a good surface structure in the pre-needling process. In the intermediate and finish needling, the EcoStar® needle guarantees a high surface quality of the end product. For products where a high tensile strength is required, the Twisted needle is the right choice. Its twisted working part makes for a particularly efficient needling. It is used, for example, in the production of automotive textiles or geotextiles. For the mechanical web bonding, among others used in the production of items for the hygiene and medical sector, Groz-Beckert offers jet strips. At the exhibition, jet strips made of three different materials will be presented: HyTec® Standard, HyTec® D and HyTec® GEBEDUR®.

The product area Carding will highlight SiroLock® as well as EvoStep® doffer and worker wires at the ITM. Together they guarantee a homogeneous fiber distribution and minimized fiber consumption in the nonwovens process. SiroLock® and EvoStep® wires feature a pronounced step undercut on the tooth front and a distinctive tooth shape. The optimized geometries of these wires allow an up to 30 % higher fiber take-up and retention. This significantly improves the fiber control and prevents fiber fly in spite of high production speeds. The higher degree of fiber control significantly improves the fiber transfer from the main cylinder to the worker or doffer, avoiding unnecessary fiber recycling around the main drum. The reduced maintenance effort facilitates a faster and smooth restart. SiroLock® and EvoStep®, therefore, guarantee a clearly improved fiber blending and thus higher quality of the web than with conventional card clothing – and at the same time reduce fiber consumption.

For the spinning industry, the product area Carding will also showcase a special doffer wire for synthetic fibers with a rib of 0.70 mm and 520 PPSI for the processing of microfibers. In addition to that, Carding will exhibit revolving tops, stationary flats, and cleaning fillets.

Posted May, 16,2016

Source: Groz-Beckert KG

Couture in Orbit: Sympatex Technologies Collaborates With The European Space Agency (ESA) And European Fashion Schools 

MUNICH/UNTERFOERING, Germany — May 10, 2016 —Sympatex Technologies is a sponsoring partner of the new international project Couture in Orbit. The ecological alternative among functional textile specialists is collaborating with the European Space Agency (ESA) in the first European Space Fashion project the organization has staged. The project is being sponsored by the ESA technology transfer programme (TTP), by Sympatex Technologies and further sponsors from the industry segment. They provide the students with innovative functional textiles and state-of-the-art space technologies that allow the up-and-coming designers taking part in the project to explore the future of fashion. The task of the young talents is to find inspiration in space technologies and missions and let it flow into their designs.

Each of the fashion schools has been given its own, unique theme — from technology and the environment to innovation, health and nutrition. The design students from the fashion schools taking part include 13 from the ESMOD Berlin. As ESA Project Coordinator Rosita Suenson explains, ‘We have set them the task of developing everyday fashion inspired by Alexander Gerst’s “Blue Dot” mission. At the same time, the topics of earth observation and climate change must also play a role. We think that the environmentally-friendly functional textiles from Sympatex are particularly appropriate to the theme of our project and are very pleased that we have managed to get Sympatex on board as a materials sponsor.’ Haymo Strubel, Director Apparel at Sympatex, adds: ‘We are equally happy to have had the opportunity to join the project as a partner. Sponsoring new talents with projects like ‘Couture in Orbit’ is an integral part of our mission statement.’

Fashion show in the Science Museum, London
Couture in Orbit is not intended to be a competition, its aim is to celebrate the inspirational aspect of space exploration. In addition to ESMOD Berlin, the other fashion schools taking part in the project are ESMOD Paris, the Fashion Design Akademiet Copenhagen, the Politecnico Milan and the Department of Fashion at Ravensbourne in London. A jury of experts will select several designs from each school that the students will then realize for the highlight of the project: A Couture in Orbit fashion show at the Science Museum in London that will take place on the evening of 25 May 2016 as a part of the museum’s ‘LATES’ programme. Every month, this open-night attracts up to 7,000 young people to the Science Museum, London.

Posted May 16, 2016

Source: Sympatex Technologies

Honeywell Announces Plan To Spin Off Resins And Chemicals Business To Shareowners

MORRIS PLAINS, N.J. — May 12, 2016 — Honeywell announced today its intention to spin off its Resins and Chemicals business into a standalone, publicly-traded company named AdvanSix Inc. Honeywell will file a Form 10 relating to the transaction with the Securities and Exchange Commission shortly. Completion of the transaction is expected to occur by early 2017 and is subject to certain customary conditions, including, among others, assurance that the spin-off of AdvanSix will be tax-free to Honeywell shareowners, the effectiveness of appropriate filings with the U.S. Securities and Exchange Commission, and final approval by Honeywell’s Board of Directors. There is no impact to financial guidance at this time.

“Our $1.3 billion Resins and Chemicals business enjoys a leading position in the industries it serves and a global cost advantage. It is favorably positioned to continue to achieve global growth as a standalone enterprise, with added flexibility to make capital investments that enhance its offerings and service to customers,” said Honeywell Chairman and CEO Dave Cote. “Following the spin-off, Honeywell and AdvanSix will each have a more focused business and be better positioned to invest more in growth opportunities and execute strategic plans best suited to its respective business. The transaction will create added value for our shareowners, who will receive AdvanSix shares tax-free in addition to the Honeywell shares they already own.”

“Today’s announcement represents another step in the evolution of the Honeywell portfolio, as we continue to focus on driving breakthrough growth through advanced software capabilities and technology differentiation, with high-value product offerings that help us to win in the marketplace,” added Cote. “We have a well-balanced and successful capital deployment strategy, which includes acquisitions and divestitures, capital expenditures, dividends, and share repurchase, all of which drive additional value to our shareowners over the long-term.”

Upon completion of the spin-off, AdvanSix will be an independent, global, leading manufacturer of Nylon 6, a polymer resin used to produce engineered plastics, fibers, filaments, and films that, in turn, are used in end products such as automotive and electronic components, carpets, sports apparel, fishing nets, and food and industrial packaging. AdvanSix also produces Sulf-N® ammonium sulfate fertilizers and chemical intermediates, including phenol, acetone, and Nadone® cyclohexanone, and is the largest single-site producer of caprolactam.

Erin Kane will serve as President and CEO of AdvanSix upon completion of the transaction. Kane currently serves as vice president and general manager of the Resins and Chemicals business, a position she has held since October 2014. She joined Honeywell in 2002 and has held numerous marketing, management, and business director roles in Resins and Chemicals and other businesses within Honeywell. Prior to joining Honeywell, Kane held Six Sigma and process engineering positions at Elementis Specialties and Kvaerner Process.

“Erin is uniquely qualified to lead the new, independent company. She has extensive experience in managing the global Resins and Chemicals business, having served in a number of business roles with increasing responsibility over the last eight years. As head of the Resins and Chemicals business over the last two years, she helped the business expand its product portfolio while maintaining the operational and cost advantages that it enjoys,” added Cote. “Her deep industry experience and business acumen, combined with the experience she has honed in general management, marketing, and operational positions while at Honeywell, will allow Erin to provide strong leadership for the new company.”

Posted May 14, 2016

Source: Honeywell

Marzoli At ITM 2016

PALAZZOLO, Italy — May 12, 2016 — Italy-based Marzoli S.p.A.,will join the global textile industry as it gathers in June at ITM in Istanbul. Marzoli will exhibit at Hall 5, stand number 504A and will present its latest innovations for spinning technology. Among the exhibits there will be: the MDS1 ring spinning frame with Marzoli original components, the Mac3000 compact system and the MRM software platform.

The MDS1 ring spinning frame at Hall5 – stand 504A will be equipped with the following Marzoli original components: the PA 3000 pressure arm, Marzoli rings and the R²F sensors. These components contribute to the achievement of leading output quality, excellent production efficiency and superior ergonomics.

Marzoli PA3000 pressure arm, thanks to its bridge bar and the particular shape of the cradle, allows a perfect control of the fibers during main draft. The result is a significant improvement of yarn CV% and a substantial reduction of IPI values.

Marzoli rings have been designed and have been treated with particular coating and finishing operations to ensure high hardness and low friction features. This guarantees low heat, no wear of the ring and a longer running life of the traveler.

The R²F are sensors installed on the ring rail that continuously monitor the speed of the ring travelers. They signal to the operator through flashing lights where idle travelers are and alert him if there are any slipping spindles. The integration of R²F sensors with YarNet, the innovative Marzoli software platform for production management, allows to conduct useful statistical analysis on the number of yarn breaks and slipping spindles according to machine settings and external conditions, thereby giving the information for efficiency and productivity optimization.

At ITM 2016 Marzoli will also exhibit its new Mac3000. This innovative compact system includes all the most advanced technology for compact spinning. The results obtained witness outstanding quality levels on all types of yarns (carded and combed) and with all types of fibers (cotton, synthetic and technical).

The new Mac3000 guarantees constant compacting action and lower maintenance costs. The continuous tension, relaxation and flexion of the apron entail a continuous auto-cleaning effect of the holes, which, together with the dedicated modular suction system, assures constant and effective compaction. The disposition of the holes of the apron on one axis entails higher resistance of the apron to tension forces and consequently a longer service life of the component.

Within the Control room at Marzoli’s stand it will be possible to learn more about Marzoli Remote Maintenance. This innovative platform analyzes the symptomatic data gathered in critical parts of the machines to constantly monitor their efficiency. The data regarding temperatures, power consumption, pressures and vibrations are sent to an IoT platform, provided by Microsoft®, where they are analyzed through special algorithms developed by Marzoli. These algorithms verify that the monitored parameters are inside the machine nominal operating ranges according to the machine working conditions: if they are not, the client is immediately alerted.

The client can also count on the prompt support of Marzoli’s customer service which can access, if necessary, the customer’s machine in order to diagnose the problem and communicate the necessary steps to solve it.

Thanks to the MRM maintenance is no longer based on the experience of few technicians and on standard manuals, but on a great amount of reliable and case-specific information. This guarantees the following advantages: prevention of machine failures, longer running life of the machine components and more effective maintenance of the mill.

Posted May 13, 2016

Source:  Marzoli S.p.A.

Archroma Enters Into Collaboration With Textile Institute Of Pakistan

REINACH, Switzerland — May 13, 2016 — Archroma has announced the signature of a Memorandum of Understanding (MoU) with the Textile Institute of Pakistan (TIP). The MoU will pave way for formal cooperation between the two institutions initially for a three-year period. The partnership will benefit students of TIP who will gain access to Archroma’s Center of Excellence in Karachi through periodic training programs. The technical team of Archroma will also share the latest research knowledge with TIP students in a lecture series.

The MoU was officially signed at a ceremony held in Karachi on May 9, 2016 in the presence of Thomas Winkler, President Textile Specialties & Innovation, Archroma, and Humayun Zafar, President, Textile Institute of Pakistan, along with other faculty members.

Speaking at the occasion, Mujtaba Rahim, CEO, Archroma Pakistan Limited, said: “We, at Archroma, believe in continuous improvement and through this initiative we will impart latest knowledge and technical developments to the students who have chosen to make career in textiles. The experience gained through our hands-on training programs, textile product knowledge and operating systems at our Center of Excellence in Karachi will go a long way in enhancing academic acumen of the students.”

“Our students will benefit from the wide exposure in Archroma labs as well as highly specialized latest equipment used in textiles chemicals testing. They will also be able to get management training widely used in the corporate sector. We hope that our collaboration with Archroma will continue for mutual benefit in many years to come”, commented Humayun Zafar.

Posted May 13, 2016

Source: Archroma

Wacker Presents New Hydrophilic Softener For Textile Finishing

MUNICH, Germany — May 12, 2016 — Wacker has launched an innovative hydrophilic fabric softener for factory textile finishing. The new product, which is called WETSOFT® NE 750, does not only improve the softness of textiles, but also retains the ability to absorb water. This is particularly important for towels and materials that need to remain absorbent after finishing. The silicone fluid formulation is marketed as a water-free concentrate. It just needs to be diluted with water to produce a ready-to-use emulsion. Wetsoft® NE 750 is a new premium product for high-quality textiles that imparts a pleasant and full soft feel as well as excellent absorbency.

The main constituents of Wetsoft®NE 750 are block copolymers based on aminofunctional silicones and polyglycol. The silicone fluid segments arrange themselves in free-moving loops on the outside of the fabric and reduce friction between the fibers. This provides the fabric with an excellent soft feel, which even remains after washing. The polyglycol segments, on the other hand, ensure that the silicone finish, which is normally water-repellent, remains permeable to water.

The combination of softness and water absorbency is of crucial importance for high-quality textiles. Tests show that materials treated with WETSOFT® NE 750 have a pleasant, soft and full hand feel while remaining absorbent. As a result, they quickly take up moisture from skin and hair. This is due to the fact that the emulsion penetrates to the core of the fabric, even when the fabric contains long pile fibers. Compared to conventional fabric softeners, the special molecular architecture of Wetsoft® NE 750 facilitates water uptake and, at the same time, significantly increases absorbency. From a textile manufacturer’s point of view, it is important that subsequent textile corrections, such as re-dying of the material, can easily be made after the textile has been treated with the product.

Wetsoft® NE 750 offers significant advantages for textile-auxiliary formulators. The hydrophilic fabric softener is marketed as a water-free concentrate with a high solids content. The product is self-emulsifying and can be diluted with water in a ratio of 1:1 to 1:5 to form a stable emulsion. This makes the product easy to formulate. Users obtain a stable emulsion that combines the typical product benefits of a microemulsion and a macroemulsion. The hydrophilic fabric softener can be applied to towels, woven textiles or knitted fabrics by either exhaust or padding processes. Both cotton and blended fabrics containing polyester can be finished with the product.

Posted May 12, 2016

Source: Wacker Chemie AG

Delta Apparel Reports Fiscal 2016 Second Quarter and Six-Month Results: Initiating A Manufacturing Realignment

GREENVILLE, S.C. — May 12, 2016 — Delta Apparel Inc.  today reported that for its fiscal 2016 second quarter ended April 2, 2016, expanded gross margins drove net income to $3.4 million, or $0.43 per diluted share.  Net sales, impacted to some degree by the bankruptcy of a large retail customer, were $109.2 million for the quarter compared with sales of $109.6 million in the prior year second quarter after adjusting for sales of $5.4 million in the since-divested The Game business and under the Kentucky Derby license that the Company did not seek to renew for 2016.  Overall gross margins expanded 510 basis points over the prior year period and 270 basis points sequentially.  Operating profit was $5.9 million, or 5.4% of sales, resulting in earnings of $0.43 per diluted share compared with $0.03 per diluted share in the prior year second quarter after adjusting to exclude the gain on the sale of The Game business realized during that quarter.  Prior year second quarter earnings including that gain were $0.46 per diluted share.

For the first six months of fiscal 2016, net sales increased to $199.3 million from $197.6 million in the prior year period adjusted for sales attributed to the since-divested The Game business and the since-discontinued Kentucky Derby license.  Net income was $4.1 million, or $0.52 per diluted share, in the first six months of fiscal 2016 compared with a net loss in the prior year period of $565 thousand, or $0.07 per diluted share.

Manufacturing Realignment
During the past two years, the Company has been expanding its manufacturing capacity and improving its flexibility to better serve its customers while also focusing on process improvement and cost reduction to remain competitive in the apparel marketplace.  In furtherance of these goals, the Company is initiating a manufacturing realignment that will result in the closure of its textile manufacturing operation in Maiden, North Carolina and the transition of production to its Honduran textile facility. This realignment is intended to maximize production at the Company’s lower-cost facility and eliminate duplicative fixed costs.  The Company expects to support its Mexicosew and screen-print production with in-country sourced fabric. In addition, the Company will source domestic fabric with current suppliers that will be sewn in the Company’s Rowland, North Carolina plant to support its Made in the USA programs.

Once completed, the realignment is expected to significantly lower production costs, thereby improving gross margins and increasing earnings by up to $0.70 per diluted share.  The Company is investing approximately $7 million in new equipment for its offshore manufacturing operations that should be installed this quarter to expand output in those facilities. Expenses of approximately $3 million, or $0.28 per diluted share, are expected in fiscal 2016 as part of this realignment, including severance, shutdown and start-up inefficiency and other expenses, with the majority of this expense in the fiscal 2016 third quarter.  The realignment should be completed by the end of fiscal year 2016 and the Company expects to begin realizing the associated cost benefits in the first half of fiscal 2017, with the savings in the back half of fiscal 2017 expected to annualize at approximately $8 million.

Basics Segment Review
Basics segment gross margins in the fiscal 2016 second quarter expanded by 810 basis points over the prior year period resulting from a stronger product mix, continued manufacturing efficiencies, and lower raw material costs.  Net sales in the basics segment were $69.8 million, off 2.2% from prior year second quarter net sales of $71.4 million. Activewear sales were down 1.5% from the prior year period due to a 7% decline in unit sales of basic tees that was partially offset by strong growth in fashion basics, which exceeded 250% year-over-year growth, and catalog full-package growth of 15%.  Private label sales improved 4%, with growth coming from regional, trendy brands as well as new customers acquired in 2015.  Art Gun experienced solid year-over-year growth in March but an overall sales decline of approximately $500 thousand for the full second quarter as it made necessary adjustments to correct inefficiencies that surfaced during the extremely high-volume 2015 holiday season.

Branded Segment Review
Adjusted for The Game and Kentucky Derby sales in the prior year second quarter, branded segment net sales grew 2.8% to $39.3 million in the fiscal 2016 second quarter while achieving margin expansion of 110 basis points.  Salt Life experienced year-over-year sales growth of 23% in the second quarter and nearly 120% sequentially, with its ecommerce website, www.saltlife.com, growing 48% over the prior year second quarter and 68% year-to-date.  Strong demand for the Salt Life brand continued with a robust sell-through of the Spring 2016 product line. Salt Life’s new distribution center is functioning well and proven capable of handling the record shipment volumes Salt Life is experiencing.  The Salt Life store in San Clemente, California is progressing and scheduled to open in mid-Summer this year.

The Soffe business was negatively impacted by a large customer bankruptcy and otherwise would have achieved sales growth of 5% over the prior year period.  Soffe has enhanced its service levels to the independent sporting goods channel and recently launched a new business-to-business website that should further strengthen Soffe’s recent double-digit sales growth in that channel.  Soffe’s new products and improved customer service and in-stock position should also help fuel growth across other sales channels going forward.  While the www.junkfoodclothing.com ecommerce website achieved growth of 26% for the second quarter, overall Junkfood sales were down $1.9 million from the prior year period.  The decline is primarily attributed to unsettled conditions in the retail marketplace and management changes at several specialty apparel customers that led to more deliberative buy decisions and slower order placement during the transitions.

Robert W. Humphreys, Delta Apparel, Inc.’s Chairman and Chief Executive Officer, commented, “The strength that Delta Apparel has shown in the first half of this fiscal year is a testament to the effectiveness of the strategic initiatives we announced 18 months ago and the ability of our team to successfully implement them. While conditions in the retail apparel marketplace have shown little improvement, we have made significant progress both financially and operationally.  Delta Apparel is now more streamlined and focused on areas that offer the greatest potential for profitable growth.  We have significantly upgraded our manufacturing capabilities, improved customer service and expanded our product offerings.  As a result, we have seen higher demand for Delta Apparelproducts, lower manufacturing costs, and significant margin expansions in each of the last four quarters, along with increased profitability.

“Over this time, we have made changes to our manufacturing platform that have reduced costs significantly and give us the ability to produce open-width fabrications that should lessen our reliance on sourced fabric. Our manufacturing realignment and the expansion and modernization of our facilities should allow us to further increase efficiency, reduce fixed costs and ultimately better serve our customers through shorter lead times.  The decision to close the Maiden plant and eliminate the jobs of approximately 160 employees who have contributed significantly to our growth and success over the years was extremely difficult.  However, we believe these steps are necessary to be cost-competitive with other global competitors.

“We also recently entered into a new loan agreement that extends our current $145 million credit facility for five additional years and lowers our interest expense by approximately 50 basis points.  We believe this underscores the excellent financial and operational positioning of Delta Apparel and the recognition of that strength by the financial community.

“Looking ahead to the second half of our fiscal year, even with continued sluggishness in the retail marketplace we expect continued gross margin expansion and modest top line growth driven by anticipated market share gains and trends we are seeing toward a more profitable sales mix.  We also expect to build on the high double-digit growth of our B2B and B2C sites in our second quarter and see continued strong growth in our ecommerce business.  These expectations, combined with our ongoing fixed-cost reduction efforts, point us toward a solid second half of the year and a bright future for Delta Apparel.”

Posted May 12, 2016

Source: Delta Apparel, Inc.

Valdese Weavers Becomes A 100-Percent Employee-Owned Company

VALDESE, N.C. — May11, 2016 — In the year following the company’s 100 YEAR Centennial celebration, Valdese Weavers is proud to announce today another extraordinary milestone — becoming a 100-percent employee-owned company, through its Employee Stock Ownership Plan (ESOP).

Michael Shelton, President & CEO of Valdese Weavers, said “One hundred years after our company was founded, and eighty years after Harley F. Shuford and his family acquired the company out of receivership during the Great Depression, Valdese Weavers is now a 100-percent employee-owned company. This process began in 1996, when the Shuford family sold a minority interest in our parent company, CV Industries, to our associates through a newly established ESOP. The family’s decision to sell their remaining interest to the ESOP marks the continuation of the commitment of Valdese Weavers and the Shuford family to our associates, our community, and our values. This change from a minority ESOP to a 100 percent ESOP creates a platform for ownership that will propel Valdese Weavers into the future. It is truly a wonderful opportunity for all of our associates who come here to work every day, and through their efforts have made our company the special place that it has become.”

Snyder Garrison, a grandson of Harley Shuford, said on behalf of the Shuford family, “There are many options for charting the future of a privately owned, closely held company like ours. The 100 percent ESOP achieves our family’s objectives for Valdese Weavers to remain an independent, privately owned company with a strong commitment to our local community. In keeping with our values, the ESOP is a great way to recognize the dedication from each of our associates toward achieving a successful, lasting legacy. Employee-owners know that their efforts can help them gain a benefit for their families that is greater than wages alone.”

Shelton further said, “I particularly want to express our appreciation to Snyder Garrison, who as our longtime CFO has led our financial and administrative teams for many years. It is with personal regret but warm wishes that I announce Snyder’s decision to transition to retirement from his executive role as CFO, and concentrate his future efforts on his strategic role as a member of our Board of Directors. I have had the distinct privilege of working as a team with Snyder and our COO Carson Copeland for almost three decades. Snyder’s leadership and influence have left an everlasting impact on me and everyone in our company.”

“On behalf of the nearly 1,000 associates who, through the ESOP, now own 100 percent of Valdese Weavers, I want to collectively thank the generations of the Shuford family who have given us their support, and have displayed confidence in our stewardship of the company they have owned since 1935,” Shelton added.

Posted May 12, 2016

Source: Valdese Weavers

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