Unifi reaffirmed that it is currently facing a challenging business environment. The Company announced that, as a result of continuing operating pressure from further weakening of its businesses, it expects to incur a net loss in the range of 10 cents per share to 16 cents per share for the September 2003 quarter, as compared with net income of 8 cents per share for the prior year September quarter.
The decrease in profitability over the prior year quarter is primarily due to a continuing reduction of average unit prices and volumes as the effects of soft economies and excessive supply chain inventories impact textile and apparel manufacturers. Additionally, the importation of fabric and apparel, primarily from Asia, into the domestic market continues to erode the business of our U.S. based customers. Sales volumes for the September 2003 quarter are expected to be 15% to 20% lower than the prior year September quarter.
The comparison of the current September quarter to the prior year period is also expected to be negatively impacted by reduced earnings from the Company's unconsolidated equity affiliates, who are being impacted by the same business conditions mentioned above.
Brian Parke, Unifi's chief executive officer said, “We have taken a number of pro-active measures, including reductions in our U.S. and European corporate and manufacturing workforce, designed to both improve financial performance and enhance our organizational effectiveness.
“We will continue to face the challenges of shifting industry dynamics and focus on driving growth as a world class company that adds value to our supply chain anywhere in the world that our customers choose to do business.
“Looking forward, we expect this to be a challenging year. In light of these difficult business and economic conditions, Unifi will continue to take the actions necessary to meet the challenges ahead and maximize operating performance.”
