GUILFORD MILLS EXPECTS EARNINGS TO DECLINE IN THIRD QUARTER

NEW YORK — Citing weakness in apparel fabric sales due to the problems in Asia, Guilford Mills Inc. predicted earnings would fall about 19 percent in the third quarter ended June 28.
Shares of Guilford slid 1 3/8 to 21 1/8 Monday on the New York Stock Exchange.
Guilford, based in Greensboro, N.C., said it expects earnings of 48 cents a share in the quarter. In the 1997 third quarter, Guilford earned $14.5 million, or 59 cents, on sales of $232.2 million.
John Emrich, president and chief operating officer, said the decline “is totally within our apparel [fabrics] business,” which represents about 39 percent of total revenues.
“The shortfall is due to a combination of factors including the Asian monetary crisis. Specifically, low price velvets, panne fabrics and ready-to-wear garments from Asia have resulted in lower-than-expected apparel revenues and have adversely impacted margins,” Emrich said in a statement.
“Given Guilford Mills’ worldwide diversity in operations and [with] all other businesses performing as expected, the impact of the Asian imports should be limited to the apparel operations in the fourth quarter,” he added.

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