FALL RIVER – Quaker Fabric Corp. (Nasdaq: QFAB) last night reported a 2006 net loss of $37.6 million, or $2.23 per share. One-time restructuring and asset-impairment charges totaled $26.5 million for the year, according to the company.
By comparison, the company’s 2005 net loss was $26.3 million, or $1.56 per share, which included restructuring, asset- and goodwill-impairment charges of $16.6 million.
“Pre-tax restructuring and asset impairment charges related to the execution of our restructuring plan accounted for $26.5 million – or more than half – of last year’s $48.5 million operating loss,” noted Larry A. Liebenow, Quaker’s president and CEO. “These charges are primarily non-cash and include the write-down to estimated realizable value of assets, including manufacturing plants and machinery and equipment, that we have put up for sale as part of our consolidation strategy.”
Revenue for the fiscal year ended Dec. 30 totaled $151.7 million, a decline of 32.5 percent from the year earlier.
“The market for upholstery fabric in the United States is continuing to experience unprecedented change, with imports in a variety of forms now representing a very large percentage of total consumption,” Liebenow said. “For us, this meant a 29-percent drop in last year’s domestic fabric sales and an 18-percent drop in export fabric sales. This fall-off in our sales outpaced the speed with which we were able to take costs out of our operations. … We believe that the steps we took last year to reshape and restructure the company represent progress toward returning the company to profitability.”
The company reported a net loss of $12.9 million, or 77 cents per diluted share for the quarter ended Dec. 30, on net sales of $32.2 million. That compared with a net loss of $5.7 million, or 34 cents per share, on net sales of $50.1 million in the fourth quarter of 2005.
Quaker Fabric Corp. is a maker of woven upholstery fabrics for the U.S. and global furniture markets, and the world’s largest producer of Jacquard-weave upholstery fabric. Its full financial report is available at BusinessWire.com.
