Consolidation costs continue to eat into profits at interiors supplier Collins & Aikman Corp. But the company continues to win business, grabbing $450 million in new contracts in the second quarter.
CEO David Stockman noted that earnings before interest, taxes, depreciation and amortization and before special charges increased to $100.4 million, up 20 percent from $83.9 million in last year's second quarter.
Collins & Aikman reported a net loss of $29.7 million or 35 cents a share on revenue of $1 billion for the quarter that ended June 30. That compares with net income of $10.7 million or 13 cents on revenue of $1 billion last year.
The company took charges of $26 million after taxes for layoffs, early retirements and equipment write-offs. Troy-based Collins & Aikman is in the midst of a program to consolidate plants and reduce its white-collar work force.
Through the first six months of the year, Collins & Aikman reported a net loss of $53 million or 63 cents a share on revenue of $2.1 billion, compared with a loss of $15.5 million or 19 cents on revenue of $2.1 billion at this time last year.
Stockman said restructuring "is not a way of life" at the company and said the program should be done by the end of the year. He also said several contracts for new business in the quarter came from the Chrysler Group, indicating the dispute between the two companies was largely over.
Collins & Aikman is 12th on the Automotive News ranking of top suppliers to North American automakers in 2003 with $2.9 billion in sales.