Ross States ITG Losses Consistent With Strategic Plan
International Textile Group Inc. (ITG), Greensboro, N.C., reported a net loss of approximately $50 million for fiscal year 2006, primarily from discontinued operations, start-up expenses for new projects, realignment of its US operations and costs associated with its merger with Greenville-based Safety Components International Inc. (SCI) in October 2006. Net sales for the year totaled $720.9 million.
"Our year-end results reflect the transition of the company, and we consider this loss in 2006 an investment in the future of ITG," said Wilbur L. Ross, chairman, ITG. "We would expect to incur losses into the first half of 2007 as our expansion projects reach completion. Our focus is on the successful start-up and implementation of key strategic initiatives across new and existing operations and the continued transformation from a North American producer to a diversified, global manufacturer."
ITGs initiatives include the formation of the Automotive Safety business unit, which comprises SCI and recently acquired BST Safety Textiles and now is the companys largest division. ITG is investing $35 million to launch a one-piece woven air bag operation at its Richmond Plant in Cordova, N.C.
The company also has acquired its joint venture partners 50-percent stake in the Parras Cone denim facility in Mexico; and invested more than $300 million to build facilities in Nicaragua, China and Vietnam that are expected to come online this year.
"By the end of 2007, we expect to have expanded our operational capabilities in North America, Europe, Asia and Africa, providing increased focus on the market growth of automotive safety textiles, denim and other apparel fabrics, government uniform and technical and specialty textile markets in both the US and abroad," said Joseph L. Gorga, president and CEO. "The combination of our global footprint, advanced R and D initiatives of our newly formed Burlington Labs and market expertise puts ITG in a leading position to drive enhanced total supply chain solutions for our customers."