NEW YORK--Battered by lack of customer demand, higher costs of raw materials and manufacturing inefficiencies, Concord Fabrics Inc. lost $769,463 in the second quarter ended Feb. 26.
The latest quarter includes a $297,266 charge for early repayment of debt. Aided by an $860,000 after-tax gain on the sale of a plant in California, Concord earned $2.1 million, or 60 cents a share, in the year-ago quarter.
Sales in the latest three months were essentially flat at $46.7 million. "Business is generally quite slow," said Alvin Weinstein, chairman of the board, adding that he does not see signs of improvement in women's apparel, which is Concord's major market. In addition, he said, manufacturing problems hurt the bottom line. However, he said, "We expect to do better financially because we think these manufacturing problems are behind us. We hope to turn a profit in the third quarter."
Weinstein cautioned that the company faces constant margin pressure, and intense competition from importers. In April 1994, Concord acquired Kat-Em International, a fabric importer. In the six months, Concord lost $429,073, against a profit of $3.1 million, or 86 cents. Sales were up 7.9 percent to $95.2 million from $88.2 million.
--Fairchild News Service

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