Cone Mills reports 1Q profit despite 20.2% drop in sales
By Furniture Today Staff -- Furniture Today, April 28, 2002
GREENSBORO, N.C. — Cone Mills, whose Cone Jacquards division supplies upholstery manufacturers, said it turned a profit in the first quarter despite a 20.2% sales decline.
Net sales were $105.8 million, compared with $132.7 million in the first quarter of 2001. Sales for the decorative fabrics segment were off 7.3% compared with the year-earlier period.
Cone said sales were negatively affected by lower volume early in the quarter in all operations and by lower pricing, primarily in denim.
Net income for the quarter was $408,000, compared with a $3.9 million net loss in the year-earlier period. The decorative fabrics segment produced $516,000 in earnings, compared with a $133,000 loss a year ago.
Gross profit margin for the quarter was 13.5%, compared to 9.5% for the 2001 period, reflecting a more efficient cost structure as a result of its 2001 Reinvention Plan, the company said.
"We are pleased to report a profitable first quarter — the first since 1998," said John Bakane, Cone's president and chief executive officer. He said long-term profitability depends on reducing costs by expanding denim capacity in Mexico. "This expansion," Bakane said, "will require a substantial capital investment as well as the successful restructuring of our balance sheet."
Cone Mills is the largest commission printer of home furnishings fabrics in North America.
| Cone Mills | |||
|---|---|---|---|
| Owns Carlisle Finishing and Cone Jacquards | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 3/31 | 2002 | 2001 | Change |
| Sales | $105,820,000 | $132,661,000 | (20.2%) |
| Operating income | 6,676,000 | 3,150,000 | 111.9% |
| Net income | (a)408,000 | (b)(3,903,000) | — |
| Earnings per share | 0.02 | (0.15) | — |
| (a) After preferred dividends; includes $47,000 equity in losses of unconsolidated affiliates. (b) After preferred dividends; includes a $673,000 income tax benefit, $349,000 equity in earnings of unconsolidated affiliates and a $2 million net loss from discontinued operations. | |||
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Cone Mills cuts losses in 4th qtr.
Feb 10, 2002 -
Cone Mills has 1st profit since '94
Feb 16, 2003 -
Cone Mills reports 2Q net loss of $4.6M
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Cone Mills posts 3Q net loss of $5.7M
Nov 4, 2001
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