Home    Resource Store    Past Issues    Buyers' Guide    Career Center    Subscriptions    Advertising    E-Newsletter    Contact

http://www.textileworld.com/partners/Shaffer_and_Max-Dyeing_and_Finishing_Plant_2014
http://ahweb.adsale.com.hk/t.aspx?unt=2354-STX15_TextileWorld
http://www.expoproduccion.mx/Content/Exhibitors/24/
http://www.textileservicesonline.com
http://www.spgprints.com
http://ahweb.adsale.com.hk/t.aspx?unt=2396-ZhejiangTex14_TextileWorld
http://www.thiestextilmaschinen.com
http://www.textileworld.com/Textile_World_Innovation_Forum_2014/
July/August 2014 July/August 2014

View Issue  |

Subscribe Now  |

Events

AATCC Color Management Workshop
08/26/2014 - 08/27/2014

Intertextile Shanghai Home Textiles - Autumn Edition
08/27/2014 - 08/29/2014

SPINEXPO™ Shanghai
09/02/2014 - 09/04/2014

- more events -

- submit your event -

Printer Friendly
Full Site
Textile News

Cone Mills Initiates Reinvention Plan

GREENSBORO, N.C.-- Cone Mills Corporation (NYSE: COE) today announced the initiation of its"Reinvention Plan." According to Chief Executive Officer, John L. Bakane,<BR><BR>"The Reinvention Plan is a new way of operating the company and is aimed at avery disciplined focus of human and capital resources on core businesses thatare defensible in this hemisphere long term. It is the continuation of theprocess we began in 1999, which improved operating margins and restoredprofitability during second and third quarters of last year. <BR><BR>We are now ableto affect this major step because of the cultural changes adopted throughoutthe organization during the past two years. Our expectations are to restoreCone Mills to financial health, establish a foundation for long-term successand implement our plan to expand denim manufacturing in Mexico."<BR><BR> The company's Reinvention Plan consists of four initiatives: (1) workforcereductions; (2) market based pay and bene

GREENSBORO, N.C.-- Cone Mills Corporation (NYSE: COE) today announced the initiation of its"Reinvention Plan." According to Chief Executive Officer, John L. Bakane,"The Reinvention Plan is a new way of operating the company and is aimed at avery disciplined focus of human and capital resources on core businesses thatare defensible in this hemisphere long term. It is the continuation of theprocess we began in 1999, which improved operating margins and restoredprofitability during second and third quarters of last year. We are now ableto affect this major step because of the cultural changes adopted throughoutthe organization during the past two years. Our expectations are to restoreCone Mills to financial health, establish a foundation for long-term successand implement our plan to expand denim manufacturing in Mexico." The company's Reinvention Plan consists of four initiatives: (1) workforcereductions; (2) market based pay and benefit practices; (3) streamlining ofcore business processes; and (4) the commitment to complete the process ofunlocking value in our Decorative Fabrics Group. The company estimates afavorable impact of $30-$40 million annually on our operating results. Abouthalf of these benefits will come from workforce reductions and related pay andbenefit practices; the other half will come from how we operate our businessesincluding vendor relationships, quality levels, efficiency, capacityconfiguration, styling and marketing. Included in the changes will be a reconfiguration of Cone'sHaynes/Florence operation. Within the next 60 days this will result in areduction of the company's denim weaving capacity, consolidation of yarnpreparation into the Haynes facility and discontinuation of production in theFlorence facility in Rutherford County, North Carolina. The reconfigurationof our North Carolina denim plants and expansion of Parras Cone will enhancethe company's denim competitiveness and reduce its denim capacity byapproximately 5% in 2002. In conjunction with this plan Cone will actively market non-core assetsincluding idle plants, property, equipment and excess inventories with thelong-term goal of using the proceeds from the sale of these assets to expandits core businesses. Expected proceeds from these non-core assets areestimated to be $15-$25 million over the next eighteen months. According to Chief Financial Officer, Gary L. Smith, "While we are excitedabout the long-term future of Cone Mills and the benefits of the ReinventionPlan, it does require significant sacrifices in the near term and changes inthe way we do business. To our associates it means losses of approximately575 jobs or about 14% of the workforce. Although the impact will vary bylocation, the corporate headquarters and Rutherford County denim operationswill experience the largest reductions, about 28% each. "For Cone shareholders, the Reinvention Plan will have a cash cost ofapproximately $5-$7 million for termination benefits and other implementationcosts. The company will recognize a total onetime charge in its secondquarter financial statement between $30-$40 million for termination benefitsand write-down of non-core assets that are to be liquidated on an expeditedbasis. The Reinvention Plan should begin yielding a benefit to operatingresults in the third quarter and over the next 18 months substantially enhanceshareholder value." Founded in 1891, Cone Mills Corporation, headquartered in Greensboro, NC,is the world's largest producer of denim fabrics and the largest commissionprinter of home furnishings fabrics in North America. Manufacturingfacilities are located in North Carolina and South Carolina, with a jointventure plant in Coahuila Mexico. The matters disclosed in the foregoing release include forward-lookingstatements. These statements represent Cone's current judgment on the futureand are subject to risks and uncertainties that could cause actual results todiffer materially. Such factors include, without limitation: (i) the demandfor textile products, including Cone's products, will vary with the U.S. andworld business cycles, imbalances between consumer demand and inventories ofretailers and manufacturers and changes in fashion trends, (ii) the highlycompetitive nature of the textile industry and the possible effects of reducedimport protection and free-trade initiatives, (iii) the unpredictability ofthe cost and availability of cotton, Cone's principal raw material, (iv)Cone's relationships with Levi Strauss as its major customer, (v) Cone'sability to attract and maintain adequate capital to fund operations andstrategic initiatives, (vi) increases in prevailing interest rates, and (vii)the inability to achieve the savings and profit improvement associated withCone's Reinvention Plan. For a further description of these risks, see Cone's2000 Form 10-K, "Item 1. Business -Competition, -Raw Materials and -Customers"and "Management's Discussion and Analysis of Results of Operations andFinancial Condition." Other risks and uncertainties may be described fromtime to time in Cone's other reports and filings with the Securities andExchange Commission.SOURCE Cone Mills CorporationWeb Site: http://www.cone.com Copyright 2001 PR Newswire




Advertisement