Burlington Industries Inc., Greensboro, N.C., reported a net loss for the second quarter of its
fiscal year, primarily due to costs associated with the previously announced reorganization of the
companys apparel products segment. The net loss for the quarter was $47.9 million, or $0.86 per
diluted share, compared with net income of $24.6 million, or $0.40 per diluted share for the second
quarter of the 1998 fiscal year. This loss includes $49 million after tax, or $0.88 per share for
the restructuring and run-out expenses, and reduced earnings from a joint venture due to its
restructuring.Net sales for the second quarter of fiscal 1999 were $403.9 million, compared with
$518 million for the second quarter of 1998.For the first six months of fiscal 1999, there was a
net loss of $39.9 million, or $0.70 per diluted share, compared with net income of $37.8 million of
$0.62 per diluted share for the first six months of fiscal 1998. Net sales for the first six months
of fiscal 1999 were $811.1 million, compared with $999.7 million for the first six months of fiscal
1998.Burlington also announced that its board of directors authorized $10 million for the
repurchase of shares of Burlington Industries common stock. The repurchase is expected to reduce
shares outstanding by approximately two percent.Clariant International Ltd., Switzerland, reported
improved earnings for 1998 both in absolute figures and as a margin despite a fall in divisional
sales to CHF 9,341 million.The six divisions generated operating income of CHF 1,174 million, up 4
percent from the 1997 figure of CHF 1,128 million. In terms of divisional operating margins, this
equates to an increase from 11.4 percent to 12.6 percent of sales. EBIT after deduction of
corporate costs and the write-off of goodwill came to CHF 1,057 million, equivalent to a 7-percent
increase.Net income soared up 23 percent from CHF 422 million to CHF 519 million, corresponding to
earnings per share of CHF 36.25 (up 25 percent from the previous year).CromptonandKnowles Corp.,
Stamford, Conn., reported that first quarter diluted earnings per share before special items
increased 12 percent to $0.47 ($32.4 million) from $0.42 ($31.8 million) in last years first
quarter.Special items included an after-tax gain of $0.39 per diluted share ($26.8 million)
relating to the sale of the specialty ingredients business in 1999 and an extraordinary loss on
early extinguishment of debt of $0.03 per diluted share ($2 million) in 1998.Net earnings per
diluted share in the first quarter of 1999 more than doubled to $0.86 ($59.2 million) from $0.39
per share ($30 million) in the first quarter of 1998.Earnings per share benefitted by the companys
stock buy-back program as weighted average shares outstanding decreased to $69.2 million diluted
from $76.4 million diluted in the first quarter of 1998.Dan River Inc., Danville, Va., reported
results for the first quarter ended April 3, 1999.Net sales were $169.5 million, up $48.6 million
from $120.9 million for the first quarter of 1998. For the current quarter, the company reported
net income of $1.6 million or $0.07 per basic share. This compares to net earnings of $5.4 million
or $0.29 per basic share for the first quarter of 1998.Sales of Home Fashions products for the
first quarter of 1999 were $117.4 million, up $47.8 million from the first quarter of 1998.The
company also reported that sales of Apparel Fabrics were $40.2 million, down $11.1 million from the
1998 first quarter. Sales of Engineered Products were $11.9 million.The Dixie Group Inc.,
Chattanooga, Tenn., reported net income for the first quarter ended March 27, 1999, of $2.6
million, or $0.22 per share on a diluted basis. This is an increase of 15 percent compared with
income from continuous operations of $2.2 million, or $0.19 per share in the first quarter of
1998.Sales for the quarter were $141.2 million, up 19 percent versus $118.6 million in 1998.The
Lectra Systs Group, Paris, announced it shows a strong growth in profits for the first quarter of
1999. At constant currencies and consolidation scope, compared with 1998, revenues are up by 8
percent and income from operations is up by Euro 2.5 million (FFr 16 million).Cash provided by
operating activities before change in working capital has increased by 168 percent to Euro 4.4
million (FFr 29 million).The decrease in the free cash flow produced during the first quarter comes
principally from the temporary increase of the need for working capital, and from the
implementation of the companys investment plan allocated to its development.Pillowtex Corp.,
Dallas, announced that net earnings for its quarter ended April 3, 1999 were $5.3 million or $0.31
per diluted share, as compared to $5.6 million or $0.33 per diluted share, for the corresponding
period of 1998.The company reported that net sales for the first quarter increased to $368.5
million from $366.3 million in the same quarter of 1998.Gross profit achieved for the first quarter
of 1999 was $56.2 million, or 15.3 percent of net sales, as compared to $61.5 million, or 16.8
percent of net sales for the same period in 1998.Selling, general and administrative expenses for
the first quarter of 1999 were $28.1 million, a decrease from $33.7 million for the same period of
1998, reflecting the continued success of the companys reduction plans implemented in connection
with the Fieldcrest Cannon acquisition.Russell Corp., Alexander City, Ala., reported results for
the first quarter of 1999 ended April 4, 1999.Sales were $233.177 million, down 9 percent from the
previous years $256.229 million. The company recorded a loss of $14.351 million, or $0.41 per
share. The results include an after-tax charge of $17.94 million, or $0.51 per share related to
certain non-recurring expenses and severance and the write down and sale of assets in the quarter
included as part of a multi-year strategic plan that was announced in July 1998.Excluding
non-recurring expenses and charges associated with the strategic plan, net income for the current
quarter was $3.589 million versus $1.849 million reported last year and earnings were $0.10 versus
$0.05 per share, for basic and diluted, over the same period in 1998.Thomaston Mills Inc.,
Thomaston, Ga., reported results for the first quarter ended April 3, 1999.Sales for the quarter
were $60,740,000 compared to $68,710,000 the year before. Most of the sales decline resulting from
the sale of the Rattlers Division and reduced sales yarn volume.Wellman Inc., Shrewsberry, N.J.,
reported net earnings before an accounting change of $.8 million, or $0.06 per share, for the
quarter ended March 31, 1999.Net earnings were reduced by the cumulative effect of an accounting
change, required under the AICPAs SOP No. 98-5 and related to start-up expenses.The company
reported net earnings, excluding unusual items, of $0.05 per share and $0.41 per share in the
fourth and first quarters of 1998, respectively.Net earnings for the first quarter of 1999 were
stable compared to the fourth quarter of 1998, excluding unusual items. Higher profits in the
Recycled Products Group (RPG) offset lower profitability in the Fibers and Packaging Products
Groups, resulting from lower polyester fiber and PET resins selling prices. RPG profits increased
mainly because of lower recycled raw material costs in the fibers business and improvements in
other divisions.X-Rite Inc., Grandville, Mich., announced its financial results for the first
quarter ended April 3, 1999.Net sales of $23.7 million and net income of $3 million, or $0.14 per
share compared with net sales of $23.6 million and net income of $3.1 million, or $0.15 per share
for the same period in 1998.The Zellweger Luwa Group, Switzerland, reported good results for fiscal
1998. Operating and annual results rose significantly, while turnover remained unchanged.The profit
increase prompted the board of directors to propose a dividend payment increase to CHF 26.00 for
bearer shares and CHF 5.20 for registered shares. The board also decided to repurchase, with parts
of the liquid funds resulting from the companys recent sale of non-operational real estate, up to
eight percent of its capital stock.Zellweger Luwa reported its turnover for 1998 totaled CHF 976.9
million (1997: CHF 973.2 million, or +0.4 percent; in local currency +1.3 percent). Order volume
declined 9.3 percent to CHF 907.6 million (1997: CHF 1004.4 million). The operating result rose
24.7 percent to CHF52.5 million, boosting the EBIT margin to 5.4 percent. The result after taxes
rose to CHF 34.1 million, or 21.4 percent above the previous years CHF 28.1 million, a 3.5-percent
turnover.

June 1999

Technology In The MillATI Special Report Camstar Shines
Camstar’s prior success leads to InStar implementation at Unifi. Unifi Inc.,
Greensboro, N.C., is one of the countrys premier fiber producers, manufacturing yarn that it sells
to textile manufacturers worldwide. Unifi fibers are specified in a range of textile markets,
including automotive, upholstery, apparel and home furnishing. The company textures and dyes yarn
and also produces partially oriented yarn (POY) for its own use.In late 1996, Unifi formalized
planning for development of an extrusion process POY facility in Yadkinville, N.C. The Yadkinville
plant was envisioned as a high-volume, high-yield, state-of-the-art facility. As such, it would be
highly automated, using the latest in manufacturing equipment and software to ensure optimum
production of partially oriented yarn. An Integrated PlantThe new plant would require a means
for establishing visibility and control over the manufacturing process, which could be accomplished
by implementing a manufacturing execution system (MES). The MES would support detailed tracking of
all work in progress throughout the plant, enabling Unifi to maintain an on-going picture of plant
floor activities while capturing all relevant data for subsequent review and analysis.

Camstar’s Autech automated guide vehicle Beyond the MES, the manufacturing software at
the Yadkinville facility would also include other applications that would need to work in harmony
with the MES. It would therefore be necessary for Unifi to select and implement an MES that could
accommodate this, along with providing all the requisite MES functionality.One of these other
applications, a distributed SCADA control system created by Unifi, was to be located on the plant
floor where it would tie together Unifis extensive array of automated equipment, including AGVs
(automated guided vehicles).The distributed SCADA control system was designed to provide a uniform
software layer for higher levels of integration. One of the key MES requirements was that it would
interface easily with the SCADA system.The other of these applications would be an ERP (enterprise
resource planning) system, running at the compare level. Unifi had standardized all its
manufacturing plants on Oracle ERP, and would be using it at the Yadkinville facility as well. It
would be essential that the new MES, in addition to interfacing down to the control system, could
integrate up to the ERP. Bringing In InSiteUnifis management has previous positive experience
working with Camstar Systems Inc., Campbell, Calif., having successfully implemented Camstars
AS/400-based MESA MES at their Reidsville and Mayodan dyeing facilities. When Unifi learned that
Camstar was coming out with InSite, a Windows NT-based MES, they recognized that it might be a good
choice for their Yadkinville facility.A Windows NT-based MES appealed to Unifi because of the
potential benefits of the Windows NT operating system. These included the cost-effectiveness of
Windows NT, as well as its open architecture which would allow for easier integration of all plant
systems.With Windows NT rapidly becoming a standard on the manufacturing floor, Unifi realized that
there would likely be increased availability of other manufacturing software applications that
could be of value to them.Unifis confidence in Camstar, coupled with the potential advantages of
Windows NT, led them to choose Camstars InSite for their new POY facility.Built on Windows NT,
InSite is a highly configured MES. Its architecture is object-oriented, multi-tiered and
distributed. In addition, InSite fully supports Microsofts COM/DCOM and ActiveX technologies,
facilitating seamless integration with other plant systems.Our IS people were familiar with Camstar
and had experienced much success with their software, says Michael Smith, director of worldwide
business and manufacturing systems at Unifi. We anticipated similar success with InSite.With InSite
in place, the Yadkinville facility opened on schedule, in January 1998. InSite At UnifiUsing
InSite, Unifi has been able to manufacture POY efficiently and cost effectively, producing the high
yields necessary to stay on top of the market. InSite provides Unifi with detailed work-in-process
tracking-supporting product quality and manufacturing efficiency as well providing tools for
continuous process improvement. In addition, because InSite directly connects to the control
system, data collection is automated, giving Unifi the benefits of full MES functionality without
the cost of manual entry.By providing Unifi with the ability to closely observe and analyze its
manufacturing processes, InSite has also been instrumental in helping Unifi operate its POY plant
within the tolerances required for high-quality POY production. Process ImprovementThe ability
to continually improve the manufacturing process is always key to manufacturing profitability and
success. At Yadkinville, specific machine settings (or recipes) and component characteristics
affect overall product quality. With InSite, information from the plant floor is directly available
to plant management, establishing a fact-based reference point for supporting or discounting ideas
regarding process and product quality improvements.By viewing the information in the MES, we can
objectively evaluate cause and effect relationships and implement process improvements, Smith said.
R and D, Manufacturing and Industrial Engineering have all developed specific areas of interest as
a result of increased MES information. A Smooth ImplementationUnifis IS team found that they
were able to easily integrate InSite into the overall plant information system. InSites use of
Microsofts COM/DCOM and ActiveX technologies provide the software hooks necessary for the
flexibility that was required to interface the MES to both the automation layer below the MES and
the enterprise level above it.Because of the way InSite supports Microsofts COM/DCOM standard, it
was very easy to integrate the MES with our other manufacturing applications, Smith said.Since
InSite was installed, it has functioned stably and reliably on Unifis Windows NT platform. Running
on a Quad-configured Compaq computer, InSite operates 24 hours a day, seven days a week, handling
an average of 200,000 transactions a day. The Benefits Of IntegrationWith InSite as a fully
integrated part of the manufacturing information system, Unifi has been able to establish
enterprise-wide connectivity between the shop floor and the corporate level, facilitating the flow
of information throughout the entire plant.InSite works closely with the distributed SCADA
controlling Unifis automated equipment. At the same time, the control system communicates back to
the MES, sending real-time data to InSite for collection and analysis. InSite also interfaces up to
Unifis Oracle ERP. InSite provides the ERP with all relevant plant data on an on-going basis,
providing plant management with the accurate and up-to-date information required to make the best
possible business decisions.The net effect is that InSite has become the software backbone for the
entire Yadkinville facility, enabling Unifi to realize its vision of a fully-integrated and
highly-automated POY production facility.With all plant operations being managed from a
computerized control room, and fewer than 100 employees physically on the shop floor, Unifi is an
example of computer integrated manufacturing at its best. New Integration ServicesAs a result
of its success over the last four years with expanding integrated manufacturing technologies, Unifi
has formed Unifi Technologies Group, which is now offering outside manufacturing companies its
knowledge and development resources for integrating information technology with automation and
machine controls.Alliances have been formed with Camstar, and other product companies, enabling
Unifi Technologies to bring reliable, scalable and cost-effective solutions to manufacturers. June 1999