High Point - US circular knitter Culp Inc. has increased capacity at its new cut and sew facility in Haiti.
Reporting a net loss for its first quarter of 2023, Iv Culp, president and chief executive officer of Culp, Inc., said that the facility was now fully staffed, with its weekly production output increasing as its employees gain more training and experience. "As a company, we are enthusiastic about growing our near shore capacity in Haiti, with two facilities for cut and sewn mattress covers and one facility for cut and sewn upholstery kits. We believe this platform provides our customers with the agility and value they need for their business," he said.
For its first quarter, net sales at Culp were $62.6 million, down 24.6 per cent compared to the prior-year period, with mattress fabrics sales down 31.8 per cent and upholstery fabrics sales down 16.9 per cent compared with the first quarter of last year.
The net loss was $(5.7) million, compared with net income of $2.3 million.
Warning of an operating loss in its second quarter, Culp said that the company continued to navigate a convergence of headwinds, including significant inflationary pressures impacting consumer spending, high inventory levels at manufacturers and retailers, a challenging labor market, and other macroeconomic uncertainties. "Although Culp remains well-positioned over the long term with its product-driven strategy and flexible global platform, the current conditions are likely to continue pressuring results through at least the third quarter of fiscal 2023," he said. "The company expects a consolidated operating loss (loss from operations) for the second quarter of fiscal 2023 that is comparable to the first quarter of fiscal 2023."
Culp also noted that following the lifting of COVID-related restrictions in China, the company's facilities resumed operations at normalized capacity in June.
