ITMF Reports Increased Yarn, Fabric Output In Q2 2007

According to the most recent State of Trade Report released by the Switzerland-based International
Textile Manufacturers Federation, global yarn and fabric production and inventories, and yarn and
fabric orders in selected regions grew in the second quarter (Q2) of 2007, compared to the previous

Q2 2007 yarn output rose by 1.7 percent over the previous quarter, with regional increases of
10.2 percent in North America, 2.6 percent in Europe and 0.9 percent in Asia; and a drop of 4.6
percent in South America. Compared with Q2 2006, output declined by 1.5 percent, reflecting
reductions of 20.7, 11.2 and 0.7 percent, respectively, in South America, North America and Europe;
and 2.7-percent increase in Asia.

Fabric production rose by 2.6 percent globally over the previous quarter’s output and fell by
2.6 percent year-on-year. Quarterly increases of 0.1, 1.9 and 11.4 percent were reported in Europe,
Asia and South America, respectively; while North American output declined by 1.3 percent.
Year-on-year, Europe, South America and North America registered respective decreases of 3.1, 6.6
and 20.7 percent; and Asian output grew by 1.7 percent.

Q2 2007 global yarn inventories reached a three-year high, rising 2.4 percent over Q1 2007.
Asia’s 5.6-percent increase and Europe’s 3.9-percent hike more than offset the 27-percent drop
reported for South America. Compared with Q2 2006, yarn stocks registered respective gains of 8.0
and 23.3 percent in Europe and Asia, and a 17.7-percent drop in South America.

Fabric stocks rose by 0.8 percent for the quarter, with increases in Asia and South America
of 0.7 and 21.7 percent, respectively; and decreases in North America and Europe of 3.2 and 7.2
percent, respectively. Compared with year-earlier levels, inventories were 21.3-percent lower, with
stocks in Europe dropping precipitously by 42.4 percent, and in Asia and North America by 15.6 and
10.5 percent, respectively; and in South America increasing by 9.8 percent.

Europe and Brazil registered quarterly yarn order gains of 1.1 and 4.0 percent, respectively,
and year-on-year reductions of 1.2 and 18 percent, respectively. Fabric orders also rose for the
quarter, by 2.6 percent in Europe and 8.5 percent in Brazil; and showed mixed year-on-year results,
with a 1.7-percent gain in Europe and an 11.9-percent drop in Brazil.

February 5, 2008