UNIFI EXPECTS QUARTER NET BELOW FORECASTS
NEW YORK — Hammered by poor results overseas, Unifi Inc. warned Tuesday that first-quarter earnings would miss analysts’ expectations by at least 50 percent.
Wall Street had been expecting earnings to be down, with a consensus of 19 cents a share for the quarter ending Sept. 26, against reported diluted earnings per share of 34 cents, or $18.3 million, a year ago.
The Greensboro, N.C.-based firm said its core domestic nylon and polyester texturizing operations had performed as expected. But it posted losses in its Irish and Brazilian operations and reduced earnings at its Parkdale America cotton-spinning joint venture. “Lower demand, pricing pressures and the overall weakness of the textile market adversely affected our business in Europe,” said G. Allen Mebane, chief executive officer, in a statement. “We continue to incur start-up costs in Brazil as we improve the quality of goods and streamline processes in the facilities.”
He said the firm plans to raise prices for polyester and some nylon products in October, which should strengthen margins. Unifi’s warning came after trading closed. Its shares closed at 13 13/16, down 1/2 on the New York Stock Exchange.