Polyester maker Unifi Inc. lost $7.7 million, or $0.13 per share in the second quarter ended Dec. 23, including discontinued operations, compared to a net loss of $18.2 million or $0.35 per share for the prior December quarter.


Net income for the current quarter was negatively impacted on a pre-tax basis by $5.9 million in restructuring and severance charges and a $2.2 million impairment charge to adjust the carrying value of the company's assets resulting from the consolidation of production into larger, more efficient facilities.

Net sales from continuing operations for the current December quarter were $183.4 million, inclusive of net sales as a result of the Dillon acquisition in January 2007, compared to net sales of $156.9 million for the prior year December quarter.


“Unifi continues to see improvement in the operating results of its underlying business since the prior year December quarter,” said Ron Smith, Chief Financial Officer for Unifi. “The continuing improvement in our operating results reflects the positive impact of our strategies to consolidate the U.S. market and to reposition the company in the commodity partially oriented yarn market.


Volume in the current quarter stayed stronger than anticipated, despite retail performance and pressure from significant unexpected increases in raw material prices. These raw material increases were related to temporary issues within the global supply chain, and we expect prices to remain stable throughout the March quarter.”

Net income for the first half of fiscal 2008, including discontinued operations, was a net loss of $16.9 million or $0.28 per share compared to a net loss of $28.3 million or $0.54 per share for the prior year period. Net sales from continuing operations for the first half of fiscal 2008 were $353.9 million compared to net sales of $326.8 million for the prior year period.


Cash-on-hand at the end of the December quarter was $25.8 million, down from the $33.9 million cash-on-hand at the end of the September quarter due to our semi-annual interest payment and a $5.0 million reduction in borrowings under the revolver. Total cash and cash equivalents at the end of December, including restricted cash, was $44.6 million compared to $44.1 million as of June 2007. Total long-term debt at the end of the December quarter was $223.8 million compared to the $228.5 million in debt as of September 2007 and $234.6 million as of June 2007.