Unifi Inc., one of the world’s leading innovators in synthetic and recycled yarns, has released operating results for the third quarter ended March 25, 2018.
The company’s net sales increased by 3.1 per cent to reach US $ 165.9 million in the reporting quarter as compared to US $ 160.9 million in the same quarter last fiscal. PVA product sales in Asia was the major driving force, the company said in the press release issued.
Gross margin for the reporting period was 10.0 per cent as compared to 13.1 per cent in the corresponding period last fiscal.
However, reduction in gross profit in the Polyester and Nylon segments resulted in the decline in operating income from US $ 9.1 million in the same period last year to US $ 7.5 million in the reporting quarter.
Net income for the reporting quarter also dropped to US $ 0.2 million as against US $ 9.2 million in the third quarter of fiscal 2017.
“The third quarter results remained below our expectations,” affirmed Kevin Hall, Chairman and CEO of Unifi, adding, “Now both top-line and bottom-line growth over the long-term will be our focus area.”
Notably, Unifi’s price actions tend to lag behind the cost increase in a heightened raw material cost environment but now the company believes that this can be rectified as raw material prices are stable now.
In view of the latest quarterly results, Unifi has now revised its fiscal 2018 outlook. The fibre manufacturer hopes to note low-to-mid single-digit percentage range growth rate this year.