Unifi Inc., a Greensboro, N.C.-based yarn manufacturer, saw net income rise 47 percent to $9.4 million from $6.4 million a year earlier on improved results in its global operations and a lower effective tax rate in the second quarter ended Dec. 28.
Net sales increased 1.6 percent $163.1 million in the quarter from $160.6 million in the prior year period. The company attributed the improvement to increased demand for its textured polyester yarn in the North and Central American regions and improvements in Brazil and China. Gross profit improved to $23.3 million, or 14.3 percent of net sales, from $18.5 million, or 11.5 percent of net sales, for the prior year quarter. Adjusted earnings before interest, taxes, depreciation and amortization rose to $16.2 million in the quarter from $12.6 million for the prior year quarter.
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“We are very pleased with the year-over-year improvements to our business, which are being led by the continued success of our mix enrichment strategy, increased demand for textured polyester, and volume growth in our international business,” said Roger Berrier, president and chief operating officer of Unifi. “The consumption of synthetic yarn continues to grow in the CAFTA region, particularly with incremental apparel programs moving into the region from Asia. We are addressing this opportunity by adding new texturing capacity in both the U.S. and El Salvador, which will become operational over the course of the second half of the fiscal year.”
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In the six months, net income rose eight percent to $16.5 million from $15.3 million, while net sales increased 2.4 percent to $337.3 million from $329.3 million.
Bill Jasper, chairman and chief executive officer of Unifi, said, “The strength of our balance sheet will allow us to remain focused on our key growth-related initiatives throughout fiscal year 2015 and beyond, which includes making investments to increase our manufacturing flexibility to support the ongoing growth in our premium value-added products.”
Unifi Inc. produces and sells textured and other processed yarns, and premier value-added yarns with enhanced performance characteristics, with one of the textile industry’s most comprehensive polyester and nylon product offerings. In addition to its flagship Repreve products made from recycled materials, key Unifi brands include Sorbtek, Reflexx, Satura, Augusta, A.M.Y., Mynx UV and Microvista. Unifi’s yarns are readily found in the products of major brands in apparel and hosiery, home furnishings, and industrial markets.