International Textile Group Inc. (ITG), Greensboro, N.C., reported a net loss of approximately
$50 million for fiscal year (FY) 2006, primarily from discontinued operations, start-up expenses
for new projects, realignment of its US operations and costs associated with its merger with
Greenville-based Safety Components International Inc. (SCI) in October 2006. Net sales for the year
totaled $720.9 million.
“Our year-end results reflect the transition of the company, and we consider this loss in 2006
an investment in the future of ITG,” said Wilbur L. Ross, chairman, ITG. “We would expect to incur
losses into the first half of 2007 as our expansion projects reach completion. Our focus is on the
successful start-up and implementation of key strategic initiatives across new and existing
operations and the continued transformation from a North American producer to a diversified, global
Among ITG’s strategic initiatives is the formation of the Automotive Safety business unit,
which comprises SCI and recently acquired BST Safety Textiles and now is the company’s largest
division. ITG is investing $35 million at its Richmond Plant in Cordova, N.C., to establish a
one-piece woven airbag operation there.
Other initiatives include the acquisition of its joint venture partner’s 50-percent interest in
the Parras Cone denim facility in Mexico; and investments totaling more than $300 million to build
facilites in China, Vietnam and Nicaragua that are expected to come online this year.
“By the end of 2007 we expect to have expanded our operational capabilities in North America,
Europe, Asia and Africa, providing increased focus on the market growth of automotive safety
textiles, denim and other apparel fabrics, government uniform and technical and specialty textile
markets in both the US and abroad,” said Joseph L. Gorga, president and CEO. “The combination of
our global footprint, advanced R and D initiatives of our newly formed Burlington Labs and market
expertise puts ITG in a leading position to drive enhanced total supply chain solutions for our
May 1, 2007