Cone Mills cuts losses in 4th qtr.
By Furniture Today Staff -- Furniture Today, February 10, 2002
Greensboro, N.C. — Supplier Cone Mills reported a net loss on continuing operations of $1.4 million in the fourth quarter. Losses on discontinued operations, which include the khaki business and the John Wolf converting division sold to Richloom, brought the quarter's total losses to $3.5 million.
The quarter was much better than last year, when Cone lost $29 million on sales of $136.1 million. Sales in the latest quarter were $88.6 million, down 34.9%.
For the year, Cone reported a net loss of $40.6 million on sales of $449.9 million, compared to a net loss of $29.1 million on sales of $552.6 million in 2000.
The company last year began downsizing and cost cutting, resulting in about $27 million in projected annual cost savings and profit improvement, said Gary Smith, chief financial officer. This year, Cone will focus on the sale of about $6 million in assets.
"After eliminating nine business activities and almost cutting the work force in half over the past three years, we are finally in the right businesses," said John Bakane, president and chief executive officer. "Our goal is to return to profitability by mid-year."
Difficult conditions in the home furnishings industry were blamed for a 23% drop in yearly sales at the jacquards division. Tom Finneran, senior vice president of operations for Cone Jacquards, said most of the decline took place in the first two quarters.
| Cone Mills | |||
|---|---|---|---|
| Owns Carlisle Finishing and Cone Jacquards | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| 13 weeks ended 12/30 | 2001 | 2000 | Change |
| (a) After preferred dividends; includes income tax benefits of $3.2 million in the 2001 13 weeks and $12.1 million in the 2001 52 weeks and net losses from discontinued operations of $1.1 million in the 2001 13 weeks and $13.3 million in the 2001 52 weeks. The 2001 13 weeks also includes $307,000 equity in losses of unconsolidated affiliates and the 2001 52 weeks also includes $177,000 equity in earnings of unconsolidated affiliates. (b) After preferred dividends; includes income tax benefits of $14.2 million in the 2000 13 weeks and $12 million in the 2000 52 weeks, equity in earnings of unconsolidated affiliates of $559,000 in the 2000 13 weeks and $2.7 million in the 2000 52 weeks and net losses from discontinued operations of $1.4 million in the 2000 13 weeks and $5 million in the 2000 52 weeks. |
|||
| Sales | $88,562,000 | $136,051,000 | (34.9%) |
| Operating income | 2,376,000 | 3,168,000 | (25.0%) |
| Net income | (a)(3,505,000) | (b)(28,958,000) | — |
| Earnings per share | (0.14) | (1.14) | — |
| 52 weeks ended 12/30 | 2001 | 2000 | Change |
| Sales | $449,908,000 | $552,603,000 | (18.6%) |
| Operating income | 4,674,000 | 25,698,000 | (81.8%) |
| Net income | (a)(40,596,000) | (b)(29,122,000) | — |
| Earnings per share | (1.59) | (1.14) | — |
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Cone Mills posts 3Q net loss of $5.7M
Nov 4, 2001 -
Cone Mills has 1st profit since '94
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