GREENSBORO, N.C. — Burlington Industries expects sales in fiscal 1995 to exceed the 3.4 percent growth posted in 1994, George Henderson 3rd, president and chief executive officer, told the firm’s annual meeting here Thursday.
The firm, he said, is pursuing a strategy of growth in its core businesses. “Our capital expenditures this year will be about $100 million — the same level as last year — and in both years approximately 70 percent of that amount is in projects that expand capacity, add specialized capabilities or in some other way create growth,” Henderson said.
The 32.2 percent profit drop reported Wednesday for the first quarter ended Dec. 31 primarily reflected reduced margins in apparel fabrics because of significant increases in raw material costs, Henderson noted, but the firm is beginning to see some improvement in its own prices. First-quarter sales were up 9.1 percent, as reported. “Demand for our products was strong across the board,” Henderson said.
He also noted the firm is changing its strategy in its three Mexican plants. The plants, he said, “used to make products just for the Mexican market, and now that the borders have opened up, we see a wonderful opportunity to use those manufacturing facilities in our North American strategy to produce products for our business here.
“We’re making components that support our products here,” said Henderson. “The devaluation of the peso makes the situation, which was nicely competitive before, even more competitive….”