Printer Friendly

CONE MILLS CORPORATION ANNOUNCES RESULTS

 CONE MILLS CORPORATION ANNOUNCES RESULTS
 GREENSBORO, N.C., July 21 /PRNewswire/ -- Cone Mills Corporation


(NYSE: COE) announced today second quarter sales of $182.6 million from continuing operations and net income of $10.8 million or $.45 per share of common stock after preferred dividends. For comparison, second quarter 1991 sales from continuing operations were $162.6 million, and net income was $1.1 million or a net loss of $.04 per share of common stock after preferred dividends.
 The 12.3 percent improvement in sales was primarily the result of stronger apparel fabric sales and, to a lesser extent, increased home furnishings sales. Export sales increased to 16.6 percent of total revenues as compared with 14.6 percent for the second quarter of 1991. Gross profit (net sales less cost of sales and depreciation) as a percentage of net sales for the second quarter of 1992 was 20.2 percent compared with 13.3 percent in second quarter 1991.
 In the apparel fabrics segment, volume increased by approximately 8 percent as compared with second quarter 1991 and average sales prices were up approximately 8 percent as a result of price increases and a higher priced mix. Lower cotton costs accounted for approximately half of the increase in the Company's operating income and increased prices and volume together with improved mix also contributed to stronger earnings.
 Sales and earnings in the home furnishings segment improved over last year's comparable period primarily as a result of stronger demand for printed decorative fabrics coupled with the expansion of the Company's Carlisle screen print facility.
 Sales from continuing operations for the first half of 1992 were $356.8 million and net income was $22.9 million or $.97 per share of common stock after preferred dividends. Sales from continuing operations for the first six months of 1991 were $306.9 million and income from continuing operations was $2.0 million or a loss of $.09 per share of common stock after preferred dividends.
 According to J. Patrick Danahy, Chief Executive Officer, "Third Quarter business remains strong as denim facilities are scheduled to operate during the traditional July vacation week. The order backlog for apparel fabrics was approximately $147 million at June 28, 1992 as compared with $123 million at June 30, 1991. Comparisons with 1991 results are expected to continue to be favorable through the remainder of the year."
 Danahy commented, "The financial condition of the Company has strengthened substantially as a result of the successful Initial Public Offering, improved earnings, and cash flow generated by inventory liquidation associated with discontinuation of the commodity corduroy and other continuous bottomweight piece-dyed fabrics product line."
 Cone Mills also announced that the Underwriters for its Initial Public Offering have exercised their over-allotment option to purchase 900,000 shares of common stock. The purchase is scheduled to be closed on July 22 with the net proceeds of $8.4 million expected to be used to redeem Class A Preferred Stock.
 Cone Mills Corporation, headquartered in Greensboro, N.C., is the largest producer of denim fabrics in the world and is the largest printer of home furnishings fabrics in the United States. The Company is the largest domestic exporter of denims and is a major exporter of printed home furnishings fabrics. The Company's manufacturing plants are located in North Carolina, South Carolina and Mississippi.
 CONE MILLS CORPORATION
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (amounts in thousands, except per share data)
 (unaudited)
 13 Weeks Ended 26 Weeks Ended
 6/28/92 6/30/91 6/28/92 06/30/91
 Net Sales $182,571 $162,635 $356,817 $306,863
 Cost of Sales 141,037 136,841 275,176 255,315
 Selling and Administrative 16,948 14,657 33,335 29,633
 Depreciation 4,566 4,225 9,215 8,406
 162,551 155,723 317,726 293,354
 Income from Continuing
 Operations 20,020 6,912 39,091 13,509
 Interest Expense - net 3,169 4,811 4,521 9,899
 Income from Continuing
 Operations before
 income taxes 16,851 2,101 34,570 3,610
 Income Taxes 6,012 1,028 11,687 1,638
 Income from Continuing
 Operations $10,839 $1,073 $22,883 $1,972
 Discontinued Operations
 (Loss) from Operations
 (net of income582) $22,883 $(6,199)
 Income (Loss) Available to
 Common Stock:
 Income (Loss) from
 Continuing Operations $9,629 $(401) $20,235 $(919)
 Net Income (Loss) $9,629 $(5,056) $20,235 $(9,090)
 Earnings (Loss) Per Share:
 Income (Loss) from
 Continuing Operations $.45 $(.04) $.97 $(.09)
 Net Income (Loss) $.45 $(.45) $.97 $(.82)
 Average Shares Outstanding 21,342 11,119 20,923 10,972
 CONE MILLS CORPORATION
 CONSOLIDATED BALANCE SHEETS
 (amount in thousands)
 (unaudited)
 ASSETS 6/28/92 6/30/91
 Current Assets:
 Cash $1,680 $3,908
 Accounts receivable - net 118,551 106,863
 Inventories 132,197 156,968
 Other current assets 4,044 2,989
 Total Current Assets 256,472 270,728
 Other Assets 12,072 6,531
 Property, Plant and
 Equipment - net 180,926 201,544
 $449,470 $478,803
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities:
 Notes payable and seasonal
 borrowing facility $27,068 $7,438
 Current maturity of
 long-term debt 894 22,866
 Accounts payable and
 accrued expenses 78,549 56,782
 Income taxes payable 9,109 233
 Deferred income taxes 22,402 23,160
 Total Current Liabilities 138,022 110,479
 Long-Term Debt 114,160 214,457
 Deferred Items 42,046 52,136
 Stockholders' Equity 155,242 101,731
 $449,470 $478,803
 -0- 7/21/92
 /CONTACT: John L. Bakane, Vice President and CFO or David E. Bray, Treasurer, 919-379-6220, both of Cone Mills/
 (COE) CO: Cone Mills Corporation ST: North Carolina IN: TEX SU: ERN


DF -- CH004 -- 1249 07/21/92 10:58 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 21, 1992
Words:957
Previous Article:REUTERS HOLDINGS ANNOUNCES 1992 INTERIM RESULTS
Next Article:881 AFFORDABLE HOUSING UNITS TO BE SUBSIDIZED BY FEDERAL HOME LOAN BANK OF NEW YORK AFFORDABLE HOUSING PROGRAM
Topics:


Related Articles
CONE MILLS CORPORATION ANNOUNCES RESULTS
CONE MILLS ANNOUNCES DEBT REFINANCING
CONE MILLS REPORTS FIRST QUARTER RESULTS
CONE MILLS ANNOUNCES FOURTH QUARTER AND YEAR RESULTS
CONE MILLS ANNOUNCES RESULTS OF COMPANIA INDUSTRIAL DE PARRAS, S.A.
CONE MILLS REPORTS RECORD SALES, LOWER MARGINS, PESO CHARGE
CONE MILLS REPORTS RECORD SALES, LOWER MARGINS
CONE MILLS ANNOUNCES OLYMPIC SALE AND FOURTH QUARTER CHARGES
CONE MILLS CORPORATION ANNOUNCES FIRST QUARTER SALES
Cone Mills Announces First Quarter Results

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters