The CEO of yarn manufacturer Unifi has forecasted a more balanced market for polyester textured yarn this year, following the setting of antidumping and countervailing duty rates by the US International Trade Commission.
The company reported flat second quarter sales of $169.5 million, a 1% increase on the same three months a year ago.
However, operating income was $2.6 million, compared with an operating loss of $800,000 in the second quarter of fiscal 2019.
Caudle said: "We achieved significant improvement in operating results over the prior year period. Results were impacted by softer-than-expected US demand in certain categories, along with global market pricing pressures.
“We are pleased with our ability to generate operating cash flows with a leaner cost structure. We now look forward to growing market share, driving innovation across our product portfolio, and leveraging our unmatched supply chain for further global growth."
For fiscal 2020, the company expects sales volumes to grow between 10% and 13% from fiscal 2019 levels; sales between $700 million and $715 million and operating income between $20 million and $23 million.
Mr Caudle concluded, "Our international operations have faced some significant pricing pressures in fiscal 2020, and global competition remains aggressive. While we are confident in our ability to generate significant improvement over fiscal 2019, including sequential gross profit improvement, recapture market share in the US and drive strong cash flows, our full-year fiscal 2020 guidance has been updated to reflect global competitive pricing pressures and lower revenue expectations for nylon.”
Source: Sports Textiles
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