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COLLINS & AIKMAN HOLDINGS CORPORATION REPORTS SECOND QUARTER RESULTS

 CHARLOTTE, N.C., Sept. 8 /PRNewswire/ -- Collins & Aikman Holdings Corporation reported sales of $376.8 million for the second quarter ended July 31, 1993, as compared to sales of $412.0 million in the second quarter of the prior year. Operating income was $11.1 million for the second quarter compared with operating income of $20.5 million in the same quarter last year. For the twenty-six weeks ended July 31, 1993, sales declined 2.0 percent from $822.1 million to $805.5 million and operating income declined 7.9 percent from $42.9 million to $39.5 million.
 Sales of the Company's specialty textiles segment in the second quarter decreased 8.6 percent to $169.2 million and operating income fell to $10.7
million this year from $15.2 million last year. For the twenty-six weeks ended July 31, 1993, sales and operating income were level at $365 million and $28 million, respectively, as compared to the first twenty-six weeks of the prior year. The sales and operating income declines in the second quarter resulted from slow sales of certain automobile models for which the Company is a major supplier of textile products that offset generally favorable trends for domestic automotive sales overall. In addition, sales and margins were adversely affected by the full impact of competitive price adjustments implemented during previous quarters.
 Operating income for the home furnishings segment declined from $5.8 million in the second quarter last year to $2.7 million this year on a sales decrease from $134.7 million to $120.5 million. The decline in sales and operating income principally resulted from the continued weakness in demand for the Company's wallcovering materials which began during the last half of fiscal 1992. In addition, a reduction in order backlogs for furniture fabrics, reflecting the sluggish retail furniture market, has resulted in shortened production runs, reduced productivity and increased operating costs. For the twenty-six weeks ended July 31, 1993, sales declined 3.6 percent to $263.8 million and operating income declined to $13.1 million from $14.9 million in the first twenty-six weeks of the prior year.
 Consumer legwear sales declined 5.6 percent to $87.1 million and operating income declined from $2.4 million to $.5 million as compared to the second quarter last year. These declines were primarily due to abnormally low overall demand for women's sheer hosiery as compared to the prior year. Sales of sock products were adversely impacted by continued sluggish retail sales in department and specialty stores and inventory adjustments at mass merchandisers. In addition to the impact of soft sales in the quarter, operating income was also adversely impacted by planned increases in marketing expenditures to improve consumer awareness and trials of new products. For the twenty-six weeks ended July 31, 1993, sales declined 3.4 percent to $176.7 million and operating income declined to $2.8 million from the $4.6 million realized last year.
 After interest expense and income taxes, the Company reported a loss from continuing operations in the second quarter of $23.9 million as compared with a loss from continuing operations of $13.3 million in the second quarter of the prior year. For the twenty-six weeks ended July 31, 1993 the Company reported a loss from continuing operations of $30.8 million versus a loss of $25.6 million in the first twenty-six weeks of the prior year.
 As previously announced, the Company was unable to find a buyer for its entire chain of Builders Emporium home improvement stores and has begun selling or disposing of Builders Emporium's inventory and other assets. During the current quarter, the Company recorded a loss on disposal of discontinued operations of $125.5 million, principally to provide additional reserves for losses and costs in connection with the sale or disposition of Builders Emporium inventory, real estate and other assets and to provide for employee severance and other costs. The Company does not expect the disposition of Builders Emporium to have a significant impact on the liquidity of the Company. After the impact of discontinued operations, the Company reported a net loss for the quarter of $149.4 million as compared to a net loss of $17.1 million in the second quarter of the prior year.
 During the second quarter the Company decided to retain its Dura Convertible business which had been classified as a discontinued operation held for sale since 1991. This decision was made because the Company did not believe the offers from prospective purchasers adequately recognized the improvement in business prospects for Dura. The results of operations of Dura Convertible, which manufactures OEM convertible top systems for the automotive industry, are now classified in the specialty textiles segment and results for prior reporting periods have been restated to reflect Dura as a continuing operation.
 Collins & Aikman Group, Inc., a wholly owned subsidiary of Collins & Aikman Holdings Corporation, owns Collins & Aikman Corporation, which manufactures and markets automotive textiles, decorative upholstery fabrics, commercial floorcoverings and wallcoverings, and Kayser-Roth Corporation, which manufactures and markets brand name and private label women's and men's hosiery and socks, including the No nonsense(R) and Burlington(R) brands. Collins & Aikman Holdings Corporation is jointly owned by Blackstone Capital Partners L.P. and Wasserstein Perella Partners, L.P. and their respective affiliates.
 COLLINS & AIKMAN HOLDINGS CORPORATION
 Financial Highlights
 (Unaudited)
 (In Thousands)
 Thirteen Weeks Ended
 July 31, 1993 July 25, 1992
 Net sales $ 376,779 $ 411,956
 Operating income 11,085 $ 20,532
 Interest expense, net (A) (31,329) (29,741)
 Dividends on preferred stock of
 subsidiary (1,128) (1,128)
 Income (loss) from continuing
 operations before income taxes (21,372) (10,337)
 Income taxes 2,526 2,993
 Income (loss) from continuing
 operations (23,898) (13,330)
 Discontinued operations:
 Income (loss) from discontinued
 operations, net of income taxes - (3,729)
 Loss on disposal, net of income
 taxes (B) (125,532) -
 Net income (loss) $ (149,430) $ (17,059)
 COLLINS & AIKMAN HOLDINGS CORPORATION
 Financial Highlights
 (Unaudited)
 (In Thousands)
 Twenty-Six Weeks Ended
 July 31, 1993 July 25, 1992
 Net sales $ 805,473 $ 822,132
 Operating income 39,530 $ 42,916
 Interest expense, net (A) (61,636) (60,092)
 Dividends on preferred stock of
 subsidiary (2,257) (2,257)
 Income (loss) from continuing
 operations before income taxes (24,363) (19,433)
 Income taxes 6,463 6,186
 Income (loss) from continuing
 operations (30,826) (25,619)
 Discontinued operations:
 Income (loss) from discontinued
 operations, net of income taxes - (9,095)
 Loss on disposal, net of income
 taxes (B) (127,673) -
 Net income (loss) $ (158,499) $ (34,714)
 (A) Excludes interest expense related to discontinued operations of $4.4 million and $5.3 million for the twenty-six week periods ended July 31, 1993, and July 25, 1992, respectively, and $1.8 million and $2.7 million for the quarters ended July 31, 1993 and July 25, 1992, respectively.
 Interest expense is net of interest income of $2.6 million and $2.4 million for the twenty-six week periods ended July 31, 1993, and July 25, 1992, respectively, and $1.5 million and $1.3 million for the quarters ended July 31, 1993 and July 25, 1992, respectively.
 (B) Loss on disposal primarily includes the provision of additional reserves for losses and costs in connection with the sale or disposition of Builders Emporium inventory, real estate and other assets and to provide for employee severance and other costs.
 -0- 9/8/93
 /CONTACT: Paul Meeks of Collins & Aikman Group, 704-548-2350/


CO: Collins & Aikman Holdings Corporation; Collins & Aikman Group,
 Inc.; Collins & Aikman Corporation ST: North Carolina IN: TEX SU: ERN


CM -- CH012 -- 9952 09/08/93 15:56 EDT
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Date:Sep 8, 1993
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