From Home Furnishing Business
Quaker Posts $5.1 Million Loss
By Home Furnishings Business in Upholstery on April 2007
Quaker Fabric has reported a net loss of $5.1 million for the first quarter ended March 31, compared to a $4.1 million loss during the same period in 2006.
Net sales for the quarter were $32.6 million, compared to net sales of $46.2 million for the corresponding period last year. Quakers financial results for the first quarter of fiscal year 2007 include after-tax restructuring charges of $300,000. Excluding these charges, net loss for the first fiscal quarter of 2007 was $4.8 million.
While we are making progress with our efforts to restructure the company, we clearly still have a lot of work to dowith primary emphasis on our ongoing efforts to manage the company back to profitability by increasing our overall sales, striking the right balance between domestic production and global sourcing, achieving costs consistent with our sales, and generating adequate cash flows, said Larry Liebenow, Quaker president and chief executive officer. We are encouraged by the stability that can be seen in our sales over the past three quartersand by the sequential improvement in our margins over that same time period. More specifically, net sales during the second half of last year and the first quarter of this year have been steadyand our first-quarter operating loss before restructuring and asset impairment charges decreased significantly versus the fourth quarter of last year.
Liebenow said the company had also reduced its debt by about $1 million during the first quarter.
We are also determined to reduce debt through the sale of excess assets. As part of that effort, we anticipate completing the sale of our corporate headquarters building in Fall River later this monthand aggressive marketing of the other assets we are holding for sale continues, he said.