LIDA NET LOSS WORSENS IN FOURTH QUARTER
NEW YORK — Stung by underutilized capacity in its printed fabrics business, coupled with margin pressures in all segments, Lida Inc. reported a deeper loss in the fourth quarter ended Jan. 1, although sales rose 15.2 percent.
Preliminary figures for the three months show a net loss of $1.7 million, against $1.1 million a year ago.
“We are particularly disappointed by these results, as we had hoped to regain profitability in the fourth quarter,” said Isaac Kier, chairman and chief executive officer of the vertically integrated converter. Sales in the quarter rose to $23.5 million from $20.4 million a year ago, as the company experienced increases in both its Lycra spandex-containing fabrics business and in printed fabrics.
“Overall gross margins fell due to pricing pressures and manufacturing variances we experienced,” Kier said.
Kier said that in part, because of the loss, Lida has obtained a conditional letter of commitment for approximately $5 million from its major secured lender.
For the year, Lida posted a net loss of $5.5 million against a loss of $3.4 million a year earlier. Sales rose 3.1 percent to $91.2 million from $88.5 million.