Gerber Businesses Exceeding Expectations

Gerber Technology, Tolland, Conn., recently announced it has generated more than $15 million during
fiscal 1999 from sales and service-related business to Mexico, a figure that surpassed the companys
initial forecasts by almost 40 percent.During the past year, business to and within Mexico has
grown faster than even our most optimistic predictions due to a couple of factors, said James
Arthurs, vice president of Gerbers international division.The expansion of American manufacturing
companies into Mexico escalated last year after an initial delay following the implementation of
NAFTA. Many major U.S. companies, among them Tarrant, Wrangler and Warnaco, suddenly made the move
and have since realized the benefits, he added. Moreover, several existing Mexican manufacturers
such as Illusion, Lartel and Confitalia have expanded their operations considerably. Finally, even
more notable, many local apparel companies have emerged and are prospering as a result of the
countrys boom.The international division of Gerber surpassed $500 million in cumulative system
sales to customers and distributors during the first half of 1999.According to the company, in
retail terms this figure actually totals more than $650 million, which is including distributor
mark-ups, local installation revenues, training, extended warranties and sales of personal
computers and system furniture.

September 1999

Knitters Gain FlexibilityandFunction

The knitting company in search of new offerings at ITMA was not disappointed since almost
every knitting machine vendor provided practical innovations to advance the capability of producing
knit fabric or garments.The overall theme of ITMA was one of increased flexibility, more
multi-functional capability, effective use of computerization and electronics and the early
approaches towards automated changeovers. However, at least two completely new knitting systems
were introduced, and these offer exciting directions for the future. Circular KnittingMonarch
Knitting Machine Corp. presented 12 circular weft knitting machines together with the computer
aided design system to facilitate the preparation of the fabric design. Monarch introduced a new
electronic Jacquard, four-color automatic striper with a separation facility-model V-LECNY5G.This
machine, in 18-cut, 33-inch diameter and 48 feeds, is geared to produced fine-gauge sweater fabrics
at a higher production rate than the fine-gauge flat machines according to Roger Hylton, director
of technical services.This sector of the market has been active due to the consumer demand for
lighter weight Jacquard-designed tops and sweaters according to Hylton.One model V-LECNY5G is on
trial in the United States. The separation yarn is inserted at the end of a garment length and is
subsequently removed prior to garment assembly.The idea of using a separation yarn is not new and
has been in use on sweater machines for a long time.The innovation present is the fact that the
separation facility is on an 18-cut (14 to 24 cut available) fully electronic machine equipped with
four color stripers and it operates in four positions knit, miss, tuck and support according to
Hylton.Monarch also introduced the Model V-LEC4D, a 20-cut, 30-inch diameter 48-feed machine with
electronic Jacquard capability on both the dial and cylinder. Clearly, this technology is geared to
produce fabrics with Jacquard capability on both the technical face and technical back of the
fabric.Both David Pernick and Hylton explained the significant advantages of Jacquard capability on
both dial and cylinder as almost endless range of structures and fabric developments together with
a more balanced fabrics because of the reversibility of the fabric.Monarch knitting machines now
come with electronic take-up that can be adjusted from outside and are equipped with a doffing
light to alert the knitter that the machine is awaiting roll doff, according to Hylton.The other
machines on display by Monarch have previously been available but have undergone some enhancements.
It is worth noting several of these enhancements: Model V-LEC6, the three-position electronic
Jacquard machine with RDS (Rotary Drop Cam) on the dial is now available as 60 feeds (rather than
48) to increase the productivity of Jacquard fabric production.Model VX-RDSY is a four-color
automatic striper machine designed for short runs, re-knits and quick changeovers. With this model,
Hylton explained that the striping section can be raised to make cleaning and working on the
machine easier.Preparation of the fabric designs for Monarch knitting machines is available through
the Monarch Design Systems-Knitworks.Knitworks runs on either Windows 95 or 98 according to David
Matsil, account manager for Monarch Design Systems. The current version of Knitworks can interface
with all the new machines being offered by Monarch. Elise Morton, sales executive for Monarch UK
indicated that 14 of the Windows version were already working in the United Kingdom.Knitworks
permits design creation and the subsequent conversion into the machine language for the knitting
machine model being used. Knitting InnovationsCamber International showed several innovations
in both single- and double-jersey knitting. Camber launched its new SJ E series of single
jersey knitting machines. These machines offer three-way technique with individual electronic
needle selection using specially-designed ceramic actuators.It was designed with electronic
applications that have been successfully used on the RJ 72 E series of double jersey
machines.Options within the SJ E line include cover wrapper, striper and wrapper-stripper versions,
with total uniformity for both stitch configurations and and fabric compatibility across the range.

Camber’s RJ 72 E3 machine offers a dramatic increase in production options by enabling the
numerous surface effects made possible by the difference in 3-stitch variations to be included in
the same garment length. Camber also offered the SJ M, a mini-Jacquard, which is available in
the same wrapping and striping options and uses the same knitting elements so that it can be
converted to the fully-electronic SJ E model if production needs increase.Camber also showed a
30-inch plush model and a striper machine (which was shown at Memmingers stand) of its
well-established, high-output Quattro 3 single-jersey machine line.For double-knit jersey, Camber
showed its RJE machine which can produce full Jacquard plush fabrics. The RJE has electronic needle
selection with three-way technique using specially designed ceramic actuators. This allows the RJE
to produce knit, tuck and miss stitch formulations while eliminating the need to change
cams.Complex designs can be loaded through a floppy disk-drive. Integrated pattern creation,
programming and storage features are also provided.The RJ M mini-Jacquard for double-jersey
knitting was also shown. It is fully compatible with the RJE and can be converted if
required.Vanguard Supreme, a division of Monarch Manufacturing, has converted all of its circular
machines to a K-frame construction. The K frame is a solid, modular frame with built-in machine
monitor, yarn-rate meter, oil-line management and lines up for roll doffing, according to Philip
Renda, manager of research and development for Vanguard Supreme.All of Vanguards machines have
Central Stitch Control and, as an option, machines can be equipped with Filter Flow, according to
Renda.Filter Flow directs air through the needle and sinker sections to prevent accumulation of
lint and debris as well as lowering machine temperature and improving needle life, especially when
knitting open-end yarns. Consistent with Vanguards strategy of developing the basic machines as a
compliment to the range offered by Monarch Knitting Machine Corp., four machine models were shown
at ITMA: model KSA3R raceway machine with 3 feeds per inch, angular sinkers and a built in Filter
Flow system; KS/1.5L terry/velour machine, designed for the production of plain terry, velour,
feeder stripes, double fleece, chenille fabric and Lycra®-plaited structures; model 2SR2/V,
two-track rib machine with 2 feeds per diametrical inch is designed to produce basic rib fabrics
for underwear, Morgan thermal and raschel thermal, and elastomeric plaited fabrics; and the 2SR2/V,
available in body sizes from 15-inch through 30-inch diameter.Renda also described the Model
4SJ4/HAC as the most productive of the four-track single-jersey machines operating continuously at
a 1500 speed factor and also available in diameters ranging from 9 inches through 36 inches.The
main application for the 4SJ4/HAC is for the production of plain jersey fabric for sportswear,
underwear, T-shirts and feeder stripes, plaited fabrics, and Lycra fabrics. Vanguard has also
introduced a broken hook detector that senses the position of the needle butts in the cam track.
Renda explained that a needle without yarn follows a different path through the cam race and
therefore permits detection.Harry Lucas Textilmaschinen showed a variety of circular knitting and
circular- and flat-warp knitting machines including: the RR2-FB-105 circular knitting machine with
Jacquard device for the production of two- or four-color curved fabric with a firm edge; the R-2s
high performance circular knitting machine to cover inlays up to 400 revolutions per minute; the
VEPA-G circular warp knitting machine for the production of bandaging material with elastic thread
feeding for up to 100 spools; the RD-2s wire knitting machine with electronic thread control,
needle head breakage control and fabric control; and the GTM knitting machine with stretching
device through heated yarn-feed air-jet device with fixation for the knitted fabric which can work
up to 100 spools.Tritex International presented six machines, five of which were new, for a variety
of knitting and related applications.The HS950 is a new electronically controlled shaping and
striping machine has been developed utilizing Tritexs TX950 machine. It incorporates computerized
stripping and shaping.Designed for the production of fabric for end-uses as varied as medical
bandages, ladies fashion tights and fruit and vegetable packing, the CW200 is a development from
the CW100 two-ring, mechanical circular warp machine.A third patterning ring has been added with
full electronic control and modifications have been made to the coupling of the positive feed and
take down mechanisms. Software has been written to allow the machine to produce a variety of
structures.The cylinder has 60 needles and of the three patterning rings two and a half are used
enabling 150 yarns to be accommodated. There is an automatic stitch length adjustment and fabric
roll-up on both models.The machine is built on a tubular steel frame similar to the CW100 model.
Each pattern ring is controlled by a servomotor which provides full electronic control over the
rings.The Warp V flat-warp knitting machine has been developed to meet the growing demand by trim
producers to make fabrics with higher production speeds on a twin bed warp knitting machine but
with the fabric having the appearance and characteristics of a flat trim.The machine has 5-12
needles per inch and operates at speeds of 400-600 courses per minute. The two eight-inch needle
beds are mounted in an inverted V formation.Each pair of needles has an individual feed. The number
of vertical strips is limited to the number of feeds due to the traditional V-bed
orientation. 

Mayer and Cie showed an entirely new range of circular knitting machines for high-speed
production of body-sized interlock/rib fabrics through to fully electronic Jacquard and robotically
operated cam changes.Jim Pitts, regional sales manager for MayerandCie, explained the significant
developments and enhanced fabric development opportunities.Model OVJA 2.4EA(3WT), displayed as a
72-feed, 30-inch, 28-cut machine operating at 22 rpm, used a switching robot to perform automatic
dial cam setting in three positions.The switching robot reduces the changeover time when changing
or re-knitting a fabric style, can reduce errors and de-skill the setup of the machine. Although
the introduction of a robot to perform cam changes is currently exhibited for dial cam changing,
this development offers an exciting potential for knitting machine operation in the future.Pitts
explained the introduction of the OVJA 1.6EE fully electronic jacquard design and structures on
both technical face and technical back. Shown as a 30-inch, 48-feed, 18-cut machine operating at 20
rpm, the OVJA 1.6EE offers almost unlimited design possibilities, according to Pitts.Mayer and Cie
also featured a series of technologies to improve fabric quality. The MV-MAXI, shown as a 28-cut,
96-feed machine and available in diameters of 42, 48 or 54 inch was equipped to demonstrate how
knitted fabric quality can be improved.The CONI-IN yarn measuring unit and CONI-TM yarn tension
unit fed information to the host computer which calculated changes required and automatically
adjusted the stitch length, quality wheel, tape tension and electronic takedown for the fabric
style being knitted during the show. These improvements in quality adjustment combined with robotic
cam setting, have substantially de-skilled the circular knitting machine and knit fabric producers
should anticipate significant improvements in their operations as we look into the next century for
circular knitting.Several machine vendors offered solutions for eliminating the center crease that
is set in the fabric, especially when knitting elastomerics. Mayer and Cie showed a new spreader to
cure the center crease that consisted of a ball inside the fabric at the take-down rollers together
with tapered covers on the take-down rollers at the edges of the fabric.Other solutions offered by
Mayer Industries and Vignoni Srl involved slitting the fabric and rolling the fabric as open
width.In the case of Vignoni, two fabric rolls were formed on the fully electronic Jacquard single
knit, 60-inch diameter VENIS-E machine according to Patrick Hobson of Speizman Industries.Terrot
Strickmaschinen GmbH also offered a solution for center creases on its Model S296 where the fabric
was slit on the machine a rolled up as open width goods.Terrot exhibited 12 machines, each
featuring a new frame according to Franz Hudi, district sales manager for Terrot.The purpose of the
new frame, according to Hudi, is to facilitate fast changes of machine gauge and to provide a
low-maintenance operation. Terrot showed a new electronic transfer machine, Model UCC-54-T, with 32
knitting feeders and 16 transfer feeds. The dial is equipped with a drop cam system.Hudi explained
that this machine provide endless opportunity for the fabric designer, such as the use of ground,
elastomeric and Jacquard yarns at one feed to produce plaited Jacquard fabrics or obtaining a
single-jersey plaited area then combined with a double jersey Jacquard effect.Terrot also
introduced the Model UCC4F548, a 48-feed, 18-cut, fully electronic Jacquard machine equipped with 4
color stripers to offer the industry additional capability in fabric design. Orizio Paolo SpA
and Marchisio SpA machines featured enhancements for the ITMA show according to Paisley Gordon,
vice president, knit fabric division of Speizman Industries. Gordon said that Marchisio has
developed a new high-speed (2200 speed factor) prototype machine for the production of single
jersey. The new model V3N-V is currently an 18-inch diameter machine operating at 120 rpm and can
knit a roll of fabric in 18 minutes, according to Gordon.

Orizio Paolo’s MJD/CE circular knitting machine Sliver KnittingSliver knitting has been
a stable fabric forming system for a long time and had reached a steady market and state of
knitting science.However, ITMA showed renewed interest in sliver knitting by employing a method to
knit-in all of the fibers than normally formed the pile on the fabric.Mayer Industries Vice
President of Marketing, Earl Quay, explained the Fiberknit System as the most economical sliver
knit production ever developed with a minimal fiber loss of 8-10 percent from greige to finished
fabric.Quay cited the soft drape and hand of the fabric as exceptional and the 20-percent
yarn/80-percent fiber yields a low-cost plain or patterned fabric for lightweight knitwear.Terrot
showed their sliver knit model MKP 3 and Herbert Mueller of Terrot explained the range of products
possible. These include technical textiles, toys, garments, interlinings and new opportunities by
having the pile fiber knitted into the fabric by providing several alternating jets of air to weave
the pile fibers into the path of the knitting needles. Pai Lung Machinery Mill Co. Ltd. estimates
that in the year 2001, 50 percent of its revenues will come from non-clothing fabric knitting
machines. Consistent with this direction, Pai Lung showed a range of ten machines geared towards
upholstery, fish-net structures and technical textiles as well as clothing fabrics.Seven of the
machines were fully electronic and three were basic machines according to Robert Chen and Jeffrey
Wu of Pai Lung. Four of the Pai Lung machines represent unique electronic knitting technology,
according to Chen. These machines are for the production of automotive fabrics (model
PL-TSCJ3/FP-AP), megapile for upholstery and seats where the pile is cut on the knitting
machine(model PL-tdMPCJ-AP), supermesh (model PL-TSEOJ/C3-AP) and a double-sided computer terry
Jacquard machine (model PL-JSDPOJ-AP).  Flat KnittingShima Seiki Mfg. Ltd. introduced an
entirely new range of knitting machines based on a new slide needle and called FIRST
(Full-fashioning, Intarsia, Rib, Sinker and Transfer).According to Tony McBryan, manager of the
knit division in the United States, Canada and Mexico, FIRST sets the direction for the next
generation of flat knitting technology.The key development permitting the new technology, according
to McBryan, is the slide needle. The slide needle acts as a compound needle but, in addition, the
slide element can extend beyond the hook part of the needle for transferring and receiving
loops.The major technical advantage of the slide needle, according to both McBryan and Toshio
Nakashima, general manager for Shima Seiki, is that the slide needle is in the center of the trick
which gives a balanced stitch and therefore better loop quality.It should be pointed out that most
flat machines that perform transfer have the needle to one side of the trick to accommodate the
transfer element.The new slide needle is expected to cost about the same as a flat knitting
transfer needle, according to Henry Tio, president of Groz Beckert USA Inc. Exact costs had not
been determined at the time of the ITMA show but Groz Beckert displayed the knitting action of the
slide needle.Shima Seiki also promoted the concept of multi-gauge where the slide needle offers
flexible adjustment of loop size regardless of gauge, according to Nakashima even while knitting a
single garment.Such Gaugeless capability permits special garment effects especially when a single
knit part of the garment is adjoining a part composed of double knit.Typically one machine can knit
from 7 to 12 gauge. FIRST has been introduced into the market two months prior to ITMA and two
machines are being tested at this time, according to McBryan.The FIRST machines with the four
knitting beds (two needle beds and two transfer jack beds) are geared for the product of WHOLE
GARMENTS and Shima Seiki demonstrated how complete complex garments could be formed on the FIRST
machines.Additionally, Shima Seiki introduced the SWG-X machine with four knitting beds each
housing slide needles.The SWG-X is still in a prototype stage with only one in operation for ITMA
but this technology offers additional knitting opportunity that has yet to be developed according
to McBryan. Stoll America Knitting Machinery, Inc. promoted its Knit and Wear technology
available on the CMS 330TC multi-gauge machine. This technology is suitable for knit panels,
pockets, etc, according to Richard Garret of Stoll. The multi-gage concept allows the knitter
to work in ranges of 5-10, 6-12, and 7-14 based on gauges of 5.2, 6.2 and 7.2 respectively. Garret
also pointed out the Stolls CMS 340 TC was exhibited in 20 cut and represented the only 20 cut flat
machine with full electronic capability on the market.

Stoll’s CMT 211 uses semi-jacquard options to create a wide range of knitted
fabrics. New technology to permit different stitch settings on adjacent stitches was available
on Stolls model CMS 330TC/2, a feature important for the more complex designs, according to
Garret.In the area of trims, Stoll introduced the model CMT 211, a new machine that, according to
the company, will provide a lower cost knitting solution for trims for golf shirts, etc.Overall,
the knitting machine vendors at ITMA showed a lot of innovations that will stimulate the knit
fabric sector well into the next century.

September 1999

Dixie Group Sells Remaining Textile Operations

The Dixie Group Inc., Chattanooga, Tenn., recently announced it has completed the sale of its
remaining textile facilities in Chattanooga, and Mebane, N.C., to R.L. Stowe Mills Inc. This is the
last, and largest, of four separate transactions, completing the companys plan to exit the textile
business and focus exclusively on its rapidly growing floorcovering business.As previously
announced, the four transactions will generate cash proceeds totalling in excess of $65 million,
with $11 million having been received in 1998.The Dixie Group will also receive an $8 million
long-term note.It is anticipated that the completion of these transactions will result in a
one-time recovery of previous charges, which, will be reflected in Dixies non-operating
earnings.The sale of these assets allows us to focus on profitable growth in the floorcovering
business and provides cash for investment and debt reduction, said Daniel K. Frierson, Dixies
chairman and CEO.As a result of these actions, Dixie has a stronger balance sheet and more solid
earnings prospects.

August 1999

Industry Veterans Form Management Consulting Firm

Mary T. ORourke, Andrew V. Jassin and Mahoney CohenandCo., CPA, P.C., recently announced they have
joined together to form the Jassin-ORourke Group LLC, a strategic consulting firm specializing in
all areas of the fiber, textile, apparel and home furnishings industries.Jassin-ORourke will be
headquartered in New York, offering global business solutions to companies in these sectors through
its offices in North America, Asia and Europe.According to company officials, Jassin-ORourke will
focus on five principal areas of expertise: corporate strategy, global manufacturing and sourcing,
brand management/licensing, mergers and acquisitions/strategic alliances and organizational
structure.We are seeing more and more fiber and textile companies and related businesses seeking
partnerships through joint venture, strategic alliance or acquisition as a means of adding value to
their traditional core product line and we expect these kinds of partnerships to continue
throughout the chain, ORourke said. We believe Jassin-ORourke is uniquely positioned to help
companies form these kinds of strategies and help implement them.Jassin was formerly managing
director of the Marketing Management Group, a consulting company he founded in 1989 specializing in
the apparel, accessories, jewelry and home furnishings.ORourke was previously vice president of
strategy and marketing at Werner International, a consulting firm that serves the global fiber,
textile, apparel and home furnishings sectors.

August 1999

For The Record

The photo caption on page 8 of the ITMA Special Report (ATI June 1999) should have read: Dornier introduced two completely new weaving machines.
One of these is the A-Type air-jet loom with dobby, shown here.The sub-heading for Camstar Shines (ATI June 1999) should have read: Camstars prior success leads to InSite implementation at
Unifi.The photo caption on page 47 of the same article should have read: At Unifi, Automated Guided
Vehicles are dispatched by Camstar’s InSite MES at key points in the production cycle.”

August 1999

Lectra Launches Newest Version Of U4ia Software

Computer Design Inc., Grand Rapids, Mich., a wholly owned subsidiary of Lectra Systems, Marietta,
Ga., recently released the newest version of U4ia® (Euphoria) software U4ia 5.0.The new software
features LAB color capabilities. LAB color is an international scientific color standard, based on
the physical spectral data the human eye can see.Users will be able to communicate real numeric
values for specific palette colors that production color kitchens will be able to reproduce, the
company says.U4ia 5.0 now houses several new brushes and brush effects. Users may retrieve favorite
combined settings to achieve desired effects or choose from popular natural media effects like
chalk, pencil, marker, crayon and impressionist.Major enhancements to the yarn functions provide
users realistic yarns for use in yarn-dyed woven fabrics, the company says. Also, new rendering
enhancements give customers more realistic yarn-dyed fabric images shortening approval times and
reducing sample making throughout the fabric development process.
Circle 315.

August 1999

Wall-To-Wall Innovations

Carpet OverviewBy Peggy Whaley, Carpet Editor Wall-To-Wall Innovations
Consolidation, technology and versatility combine to shape the future ofthis challenging and
ever-changing market.
 Consolidation in the floorcoverings industry has been massive in
the last few years. There were over 250 separate corporations about five years ago now there are
60. In the last few months, $2.5 billion of an $11 billion industry have been consolidated into
mills that were already doing over $5 billion. Five to seven companies produce about 80 to 90
percent of the carpet market. Today there are fewer individual companies to make decisions that
affect the entire industry. This creates even stronger competition between the major
competitors.Fortunately, growth has been strong for the carpet industry in the past few years. This
years projections are strong again. The rug portion of the business continues to grow as well.
Carpet corporations are growing in other ways and taking advantage of its existing distribution
capabilities and expanding product offerings to include wood, ceramic tile, laminates and other
home furnishings products, such as comforters, throws and table textiles. CRI – Issue Driven

The CarpetandRug Institute (CRI), Dalton, Ga., is the national trade association for the
carpet and rug industry. CRIs membership consists of manufacturers and suppliers representing over
90 percent of all carpets and rugs produced in the United States. CRI is led by Ron VanGelderen,
president, and Dan Frierson, CEO, the Dixie Group, who is chairman of the CRI Board.According to
VanGelderen, CRI will be issue driven with an outreach attitude. The focus will be on: various
technical issues in fields of health, the environment and schools; issues addressed with
governmental agencies; and communication of all the findings on these issues.CRI has many
challenging roles. For instance, carpet in the school market is being challenged because there is a
perception that carpet is more difficult to clean. The fact is, nationwide, maintenance tends to be
lacking and budgets are diminished because of added demands for budget and other issues, such as
security. CRI and the industry will focus on communicating the facts to schools and assisting them
in knowing how to specify appropriate carpets for school, and how to care for carpet and other
floorcoverings effectively and efficiently, VanGelderen said. The Bigger Get BetterWith hard
surface flooring growing dramatically and getting stronger with many carpet manufacturers as well,
diversification appears to be the name of the game. Even Shaw Industries Inc., Dalton, Ga., is now
marketing ceramic and laminate floorings as well as carpets and rugs.If you include Armstrong World
Industries, a dominant vinyl floorcovering business, in total North American floorcovering sales,
youll see four dominant floorcovering players: Armstrong, Shaw, Mohawk and Beaulieu. They control
60 percent of the total North American floorcovering sales.Shaw Industries is considered the
largest carpet mill in the world with 1998 sales of over $3.5 billion. After trying the retail
business for a few years, its retail operations were sold to the Maxim Group. The firms addition of
Queen Carpet and its commercial divisions, Designweave and Patcraft, gave a tremendous boost in the
commercial market. Mohawk Industries, Calhoun, Ga., made even bigger in-roads after purchasing
Aladden Mills in 1994. Several others mills were acquired and then last year, it made another
significant move by acquiring World Carpets. Mohawk then acquired Image Carpets, the nations
largest producer of polyester carpet, and Durkan Patterned Carpet. Mohawk is also strong in both
residential and commercial carpets. The firms 1998 sales were over $2.6 billion.Beaulieu of
America, Dalton, Ga., had 1998 sales of about $1.5 billion. Beaulieu, a privately owned firm, has
also made several acquisitions in 1998. It acquired Marglen Industries, Columbus Mills and Peerless
Carpet of Canada. Strong in both the residential and commercial markets, Beaulieu is the only
carpet manufacturer in the United States that makes its own polypropylene polymer.Carpet mills are
now manufacturing various sizes of carpets including: modules or carpet tiles for the constantly
changing office; 6-foot goods for ease of handling; the traditional 12- and 15-foot broadloom
goods; and 4-meter carpet for export.These new systems and products are answers to end users desire
for a variety of products that meet various performance and installations needs. An example of this
is the need for a moisture-impervious carpet for health-care and educational use, or a more
sectioned surface for walking comfort and insulation and sound abating qualities in retail
installations. Fiber AdvancementsCarpet mills and fiber manufacturers are having research and
development successes in producing new fibers. There are advancements in old fibers; new backing
systems which includes advancements in soft backing, attached cushions, PVC (polyvinylchloride)
backings and hard backing that are alternatives to PVC and entirely new products, such as Sollenium
from Interface.Fiber companies are still where a large majority of the action takes place. They
definitely keep pace with whats happening and todays technologies. These companies dont just adapt
to change, they sometimes lead it.And where would the industry be without marketing Relationship
marketing abounds and has been around since we bartered with fur pelts and salt. But there is a
difference. Its now also about continually reinforcing your brand name so goods or services are
continually seen.BASF realized this and has started a marketing campaign with a new direction. The
campaign is centered around a new adaptation of its familiar slogan, We dont make the carpet, we
make the carpet better and focuses on advantages accountability, sustainability, versatility and
durability. This new campaign was launched at the recent NeoCon market in Chicago. BASF is among
the top 10 producers of chemicals and related products in the United States, Canada and Mexico,
with sales of $7.2 billion in 1998.With its reputation for innovations for solution-dyed nylon,
BASF has introduced 10 new colors for its contract nylon carpet products. Designers and specifiers
will be excited about the versatility these new colors bring to our current color pallet, said Ian
Wolstenholme, sales and marketing manager for BASFs carpet fiber products said. BASF is also
incorporating recycled content in all of its branded Zeftron® solution-dyed and natural nylon
carpet yarn products. Additionally, it is extending its 6ix Again® carpet recycling program to all
mill extruders who use BASF Ultramid® Nylon 6 polymer containing recycled content as part of BASFs
ongoing commitment to environmental responsibility and sustainable development.DuPont Flooring
Systems is a fully integrated flooring product and services distribution network. Dedicated to
delivering total customer satisfaction, it is a single source for floorcovering needs, including
products, installation, maintenance and reclamation.Most of the new technology at DuPont improves
styling capabilities of Antron® Legacy nylon and Antron Lumena® solution nylon. Dave Findlay,
director, DuPont Chemical Flooring, related that DuPont has concentrated on developing new tools to
help mill customers create carpets with deeper, richer, more vivid colors with its Antron Legacy
nylon. We have introduced nearly 20 new colors in a smaller fiber size to provide more versatility
with both color and design, Findlay said. A new innovation for Antron Lumena is the DuPont
ColorLink technology that creates a random pattern of color throughout the carpet, a styling
capability that has not previously been possible with solution-dyed nylon fiber.Continuing to lead
the industry in surface energy technology, DuPonts DuraTech® patented soil-resistance treatment is
the most durable fluorochemical/soil-release product available today. DuraTech is an integral part
of Antron Legacy nylon and Antron Lumena solution-dyed nylon. Findlay says that DuPont continually
takes steps to improve their environmental offering.More than 50 percent of the production of
Antron Lumena solution-dyed nylon contains recycle-content nylon. In addition, DuPont Flooring
Systems is committed to keeping all carpet removed out of landfills. Since Carpet Reclamations
Programs inception, approximately 44 million pounds of carpet have been reclaimed, Findlay
said. New TechnologyThe carpet industry has countless combinations of carpet patterns,
textures and fibers. New technology is making the fashion side of the industrys products very
exciting. The advancements in tufting technology allow many more patterned and textured carpet
styles. The advancements now offer fashion-oriented choices instead of the majority of products
being a commodity of beige plush.VanGelderen noted that this is happening in residential as well as
commercial business and seems to be the norm instead of the exception. The challenge on the
residential side will be to encourage traditional carpet retailers to stock the new patterns and
assist the consumer in knowing how to decorate with them.On the commercial side, the designers are
embracing the patterns easily and quickly.

August 1999

Cone Mills Announces Alliance With Deborah-Starlite

Cone Mills Corp., Greensboro, N.C., recently announced an agreement to manufacture full package
apparel with Maquilas Y Confecciones Deborah/Starlite, Puebla, Mexico.According to the terms of the
agreement, Cone will provide fabrics and marketing services. Deborah/Starlite will provide apparel
manufacturing, wet processing and distribution. The focus will be on piece-dyed products including
casual pants, shorts, skirts and other sportswear items.Many of our customers have been asking Cone
to offer garment packages, said Watts Carr, president of the Cone Textile Group. This alliance is a
great way to go about doing that. By working closely with Deborah/Starlite in Mexico, we will be
able to offer our customers in this hemisphere efficient service and speed-to-market with a variety
of fabrics and products.Cones strategy going forward is to make alliances that provide apparel
manufacturing services for our customers in different manufacturing platforms throughout the world.

August 1999

Financial Reports

Culp Inc., High Point, N.C., reported sales and earnings for the fourth quarter and fiscal year
ended May 2, 1999. Net sales for the quarter totaled $132.2 million compared with $135.8 million
during 1998.Net income for the quarter was $2.9 million, or $0.23 per diluted share, compared with
$4.2 million, or $0.31 per diluted share in the fourth quarter of fiscal 1998. For the year, net
sales increased to $483.1 million compared with $476.7 million in fiscal 1998.Net income for the
year was $3.1 million, or $0.24 per diluted share, compared with $15.5 million, or $1.19 per
diluted share in fiscal 1998.JPS Textile Group Inc., Greenville, S.C., announced results for the
second quarter and six months ended May 1, 1999.For the second quarter, there was a net loss from
continuing operations of $3.5 million, or $0.35 per diluted share, compared with net income from
continuing operations of $2.3 million, or $0.23 per diluted share, for the second quarter of fiscal
1998.The reported net loss for the quarter was $26.3 million, or $2.63 per diluted share, compared
with net income of $2.9 million, or $0.29 per diluted share, for the same period in 1998.For the
first half of fiscal 1999, there was a net loss from continuing operations of $3.1 million, or
$0.31 per diluted share, compared with net income from continuing operations of $3.8 million, or
$0.38 per diluted share for the first half of fiscal 1998.Kellwood Co., St. Louis, reported record
sales and earnings before unusual items for both the fourth quarter and the year ended April
30.Sales for the year increased 3 percent to $2.15 billion, from $2.09 billion last year.Net
earnings declined to $1.95 million, or $0.07 per diluted share, due to special charges totally
$62.34 million taken in the fourth quarter. Earnings before unusual items and income taxes
increased 16 percent or $101.5 million, from $87.6 million for the same period in 1998.Diluted
earnings per share before unusual items increased the sales and earnings of Koret Inc., which was
merged into Kellwood in April 1999.Sales for the fourth quarter were a record $628.4 million, up 6
percent from $594.9 million a year ago.Texfi Industries Inc., New York, recently announced a loss
of $3.202 million, or $0.36 per basic and diluted share, for its second quarter ended April 30,
1999, compared to a loss of $2.768 million, or $0.31 per share, for the same period last year.Net
sales in the second quarter 1999 declined by 31.2 percent, to $23.438 million, from $34.084 million
for the second quarter 1998.Total costs dropped by 28.9 percent, to $24.693 million, from $34.738
million in the same period of 1998.

August 1999

Springs Expands Springmaid Brand Distribution

Springs Industries Inc., Fort Mill, S.C., recently announced that it is expanding distribution of
its Springmaid® brand to the mass merchant channel in order to better align its value.
Historically, Springmaid has been positioned in department and specialty stores, as well as
selected national chains. The new distribution begins with shipments in spring 2000.The company
said that the decision creates the opportunity for more consumers to purchase the Springmaid brand
where they shop.Our objective is to sell Springs branded products in all channels of distribution,
said Thomas P. OConnor, Springs executive vice president. By maintaining the Wamsutta® brands
current distribution through department and specialty stores and by maximizing our private label
and valuable licensing opportunities, we are in a better position to be in front of all consumers
with products from Springs.

August 1999

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